Multiple Choice Questions on On a share of rs 10 issued at a premium of rs 1 the whole amount has been called up But in case........... for Commerce 12th Preparation

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Multiple Choice Questions

On a share of rs 10 issued at a premium of rs 1 the whole amount has been called up But in case...........

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    On a share of rs 10 issued at a premium of rs 1, the whole amount has been called-up. But in case of a shareholder only rs8 has been received from him. Forfeited shares account would be credited by: 

    rs 8

    Incorrect Answer

    rs 2

    Incorrect Answer

    rs 3

    Incorrect Answer

    rs7

    Correct Answer
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    Explanation:

    Let’s break it down:

    - The share’s face value is Rs 10, but it was issued at a Rs 1 premium. So total payable: Rs 11 per share.

    - The company called up the whole amount, meaning both face value (Rs 10) and premium (Rs 1) are demanded.

    - Forfeited Shares Account is credited with the *amount received* on forfeited shares

    - But when premium is received than Securities premium reseve A/c is not debited.

     - Only Share capital A/c is debited (exculding premium).

     - Share Forfeited Account is Credited (exculding premium) that is Rs 7

    By: santosh
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