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  3. 12th Class
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  5. Accounting For Share Capital

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

  • question_answer
    X Ltd. forfeited 1200 shares of Rs.10 each, Rs.6 called up, for non-payment of First Call of Rs.2 per share. Journal entry for forfeiture of share will be (Calls in arrear account is not opened)

    A)
    Share capital A/c Dr. 12000  
    To Share forfeiture A/c     4800
    To Calls in arrear A/c     7200
     

    B)
    Share capital A/c Dr. 12000  
    To Share forfeiture A/c     4800
    To Equity share 1st call A/c     7200
     

    C)
    Share capital A/c Dr. 7200  
    To Share forfeiture A/c     4800
    To Equity share 1st call A/c     2400
     

    D)
    Share capital A/c Dr. 7200  
    To Share forfeiture A/c     4800
    To Call in arrear A/c     2400
     

    Correct Answer: C

    Solution :

    Share capital A/c Dr. 7200  
    To Share forfeiture A/c     4800
    To Equity share 1st call A/c     2400
     


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