Match List I with List II
| List I (Name of account to be debited or credited, when shares are forfeited) |
List II (Amount to be debited or credited) |
| A. Share Capital Account | I. Debited with amount not received |
| B. Share Forfeited Account | II. Credited with amount not received |
| C. Calls-in-arrears Account | III. Credited with amount received towards share capital |
| D. Securities Premium Account | IV. Debited with amount called up |
Choose the correct answer from the options given below :
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → A-IV, B-III, C-II, D-I
On forfeiture, every entry made for the forfeited shares is reversed (except premium already received). The share capital is taken off at the called-up amount, the unpaid part is closed and the paid part is kept by the company as forfeited.
A. Share Capital Account — this matches IV. Debited with amount called up. The shares were credited to share capital at the amount called up, so that amount is removed.
B. Share Forfeited Account — this matches III. Credited with amount received towards share capital. The money already paid by the defaulting shareholder now belongs to the company.
C. Calls-in-arrears Account — this matches II. Credited with amount not received. The unpaid calls are cancelled, so the account (or the unpaid call account) is credited.
D. Securities Premium Account — this matches I. Debited with amount not received. Premium is reversed only to the extent it has not been received.
NCERT (2026-27 edition): NCERT (2026-27 edition): |