question_answer

X Ltd. forfeited 500 shares of Rs.10 each, Rs. 7 called up, issued at a premium of Rs. 2 per share to be paid at the time of allotment for non-payment of first call of Rs. 2 per share. Entry on forfeiture will be:

A)

Share Capital A/c	Dr.	3,500
Securities Premium Reserve A/c	Dr.	1,000
To Share First Call A/c		1,000
To Share Forfeiture A/c		3,500

 

B) Share Capital A/c              Dr.            4,500 Securities Premium Reserve A/c Dr.     1,000To Share First Call A/c                       1,000 To Share Forfeiture A/c                      4,500

C) Share Capital A/c              Dr.    4,500 To Share First Call A/c               1,000 To Share Forfeiture A/c              3.500

D) Share Capital A/c              Dr.    3,500 To Share First Call A/c                1,000 To Share Forfeiture A/c                2,500