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12th Class Accountancy Accounting For Share Capital Question Bank MCQs - Accounting for Share Capital

  • question_answer
    X Ltd. forfeited 500 shares of Rs.10 each Rs.7 called up, on which he had paid application and allotment money of Rs.5 per share. Journal entry for forfeiture of share will be:

    A)
    Share capital A/c Dr. 5000  
    To Share forfeiture A/c     2500
    To Calls in arrear A/c     2500
     

    B)
    Share capital A/c Dr. 3500  
    To Share forfeiture A/c     2500
    To Calls in arrear A/c     1000
     

    C)
    Share capital A/c Dr. 3500  
    To Share forfeiture A/c     1000
    To Calls in arrear A/c     2500
     

    D)
    Share capital A/c Dr. 2500  
    To Share forfeiture A/c     2500
     

    Correct Answer: B

    Solution :

    Share capital A/c Dr. 3500  
    To Share forfeiture A/c     2500
    To Calls in arrear A/c     1000
     


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