Question

If a share of 100 on which 80 was called up and 70 paid up was forfeited, state the amount with which the share capital account will be debited:

• A. 100
• B. 80
• C. 70
• D. 10

Answer 1

The Correct Option is B

When a share is forfeited, the share capital account is debited by the amount that has been called up but not fully paid. In this case, the share was issued for 100, and 80 was called up, but only 70 was paid up. Therefore, the amount debited to the share capital account upon forfeiture is the called up amount of 80.