Match List - I with List - II.List - IList - II(A) Share forfeiture(I…

The correct answer is Option (2) → (A) - (II), (B) - (I), (C) - (IV), (D) - (III)

Each event is matched to the account that is debited or credited in its journal entry.

(A) Share forfeiture — this matches (II) Dr. share capital. On forfeiture, Share Capital Account is debited with the called-up amount and the shares are cancelled.

(B) Shares reissued — this matches (I) Cr. share capital. On reissue the shares come back into the capital, so Share Capital Account is credited (Bank and Share Forfeiture are debited).

(C) Excess application money refunded — this matches (IV) Cr. Bank A/c. Money paid back to applicants goes out of the bank: Share Application A/c Dr., To Bank A/c.

(D) Calls money received — this matches (III) Dr. Bank A/c. Money received comes into the bank: Bank A/c Dr., To Share Call A/c.