Question
Accountancy Question on Accounting for Share and Debenture Capital
| Match List-I with List-IIList-I (Name of account to be debited or credited, when shares are forfeited) | List-II (Amount to be debited or credited) |
|---|---|
| (A) Share Capital Account | (I) Debited with amount not received |
| (B) Share Forfeited Account | (II) Credited with amount not received |
| (C) Calls-in-arrears Account | (III) Credited with amount received towards share capital |
| (D) Securities Premium Account | (IV) Debited with amount called up |
Choose the correct answer from the options given below:
A
(A) - (I), (B) - (II), (C) - (III), (D) - (IV)
B
(A) - (IV), (B) - (III), (C) - (II), (D) - (I)
C
(A) - (I), (B) - (II), (C) - (IV), (D) - (III)
D
(A) - (III), (B) - (IV), (C) - (I), (D) - (II)
Answer
(A) - (I), (B) - (II), (C) - (IV), (D) - (III)
Explanation
Solution
(A) Share Capital Account is debited with the amount called up. (B) Share Forfeited Account is credited with the amount received towards share capital. (C) Calls-in-arrears Account is debited with the amount not received. (D) Securities Premium Account is credited with the amount not received. Correct Matching: (A) - (I), (B) - (III), (C) - (IV), (D) - (II). Correct Answer: Option 3.