Identify the statement that is/are not true from the following. (a) Shares can be forfeited for non payment of call money. (b) The profit on forfieted shares is transferred to capital reserve. (c) Balance of share forfeiture account is shown is the balance sheet under reserves and surplus. (d) Application money should be at least 10% of the face value of the share. Choose the correct answer from the options given below :

Question

Option 1: (a) only

Option 2: (c) only

Option 3: (c), (d) only

Option 4: (b), (d) only

AfterBoards · Accepted Answer

The answer is '(c), (d) only'. View full solution:

List-I	List-II
(A) For Transfer of Application Money	(I) Share Allotment A/c Dr. To Share Capital A/c
(B) For Money Refunded on Rejected Application	(II) Share Application A/c Dr. To Share Capital A/c
(C) For Amount Due on Allotment	(III) Share Application A/c Dr. To Bank A/c
(D) For Receipt of Allotment Money	(IV) Bank A/c Dr. To Share Allotment A/c

CUET Accountancy 2022 20 July Shift 1 PYQs

Keyboard Shortcuts