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    Question

    X Ltd. Forfeited 1,000 shares of Rs. 10 each for the

    non-payment of final call of Rs. 2. The account will be debited for called up price of a share at the time of forfeiture of shares:
    A Share Forfeiture A/c Correct Answer Incorrect Answer
    B Share Capital A/c Correct Answer Incorrect Answer
    C Share Final Call A/c Correct Answer Incorrect Answer
    D Share Allotment A/c Correct Answer Incorrect Answer
    E None of these Correct Answer Incorrect Answer

    Solution

    When shares are forfeited due to non-payment of calls, the Share Capital Account is debited with the total called-up amount on those shares.

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