Record journal entry for forfeiture of Rahul's shares.

Question

Option 1: Share Capital A/c Dr 20,000 --- Securities Premium Reserve A/c Dr 10,000 --- To Share 1st call A/c 10,000 To Share final call A/c 4,000 To Share forfeiture A/c 16,000

Option 2: Share Capital A/c Dr 20,000 --- To Share 1st call A/c 10,000 To Share final call A/c 4,000 To Share forfeiture A/c 6,000

Option 3: Share Capital A/c Dr 16,000 Securities Premium Reserve A/c Dr 4,000 To Share 1st call A/c 10,000 To Share forfeiture A/c 10,000

Option 4: Share Capital A/c Dr 16,000 To Calls in Arrears A/c 10,000 To Share forfeiture A/c 6,000

AfterBoards · Accepted Answer

The answer is 'Share Capital A/c Dr 16,000 Securities Premium Reserve A/c Dr 4,000 To Share 1st call A/c 10,000 To Share forfeiture A/c 10,000'. View full solution:

CUET Accountancy 2023 20 June Shift 2 PYQs

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