Question

Match List-I with List-II

List-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) - (I), (B) - (II), (C) - (III), (D) - (IV)
• (A) - (I), (B) - (II), (C) - (IV), (D) - (III)
• (A) - (IV), (B) - (III), (C) - (II), (D) - (I)
• (A) - (III), (B) - (IV), (C) - (I), (D) - (II)

Answer 1

The Correct Option is C

In accounting, when shares are forfeited due to non-payment, specific accounts are adjusted. Match each account in List-I with its correct description in List-II:

List-I	List-II
Share Capital Account	Debited with the amount called up
Share Forfeited Account	Credited with the amount received towards share capital
Calls-in-arrears Account	Credited with the amount not received
Securities Premium Account	Debited with the amount not received

Explanation:

• Share Capital Account: This account is debited with the total called-up amount on forfeited shares.
• Share Forfeited Account: This account is credited with the amount already paid by the shareholder on the forfeited shares.
• Calls-in-arrears Account: This account represents the unpaid portion of the called-up capital and is credited with the amount not received.
• Securities Premium Account: This account is debited only if the premium amount was not received. In this specific scenario, it doesn't affect the provided matches.

Correct Matching: (A) - (IV), (B) - (III), (C) - (II), (D) - (I)