When shares are forfeited, the share capital account is debited with ________ and the share forfeiture account is credited with __________.
A)paid-up capital of shares forfeited; called up capital of shares forfeited
B)called up capital of shares forfeited; calls in arrear of shares forfeited
C)called up capital of shares forfeited; amount received on shares forfeited
D)none of these

Question

Quizplus · Accepted Answer

When shares are forfeited, the share capital account is debited with the called-up capital of shares forfeited, and the share forfeiture account is credited with the amount received on shares forfeited.

When Shares Are Forfeited, the Share Capital Account Is Debited