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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
    Z Ltd. forfeited 1800 shares of Rs.10 each, on which first call of Rs.3 per share was not received; the second and final call of Rs.2 per share has not yet been called. Journal entry for forfeiture of share will be (Calls in arrear account is opened):

    A)
    Share capital A/c Dr. 18000  
    To Share forfeiture A/c     9000
    To Call in arrear A/c     9000
     

    B)
    Share capital A/c Dr. 18000  
    To Share forfeiture A/c     9000
    To Equity share 1st call A/c     9000

    C)
    Share capital A/c Dr. 14400  
    To Share forfeiture A/c     9000
    To Equity share 1st call A/c     5400

    D)
    Share capital A/c Dr. 14400  
    To Share forfeiture A/c     9000
    To Calls in arrear A/c     5400

    Correct Answer: D

    Solution :

    Share capital A/c Dr. 14400  
    To Share forfeiture A/c     9000
    To Calls in arrear A/c     5400


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