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At time of forfeiture share capital should be debited with called value or face value ? In case if the shares are issued at premium the shares are fully called up and forfeited for non payment ? Then which value should be debited in share capital ? Either called value with premium or face value ?

Veera dinesh.B

CA Inter

★ 2K+

11-May-22 20:27

353

Answers (3)

Best Answer

Only share capital face value shall be debited. If security premium is received don't debit it if not then debit it.

Sugam SM

CA Final

★ 9K+

11-May-22 20:28

the called up value should be debited because the compay will cancel the share money which is called. and if the security premioum is collected then ther is no need to cancel it [ debit ]

Niranjan Bhat

CA Inter

★ 10K+

12-May-22 00:02

At the time of forfeiture, share capital should be debited with called up value. the shares are fully called up and forfeited for non-payment then share capital should be debited with called up value excluding Premium.

Jitendra Kumar

CA Final

★ 41K+

12-May-22 09:26