If 500 shares of 10 issued at a premium of 1 on which 9 (including premium) have been called and 7 including premium have been paid are forfeited, the forfeiture account should be credited by :

Question

Quizplus · Accepted Answer

The forfeiture account is credited by the amount paid by the shareholders before forfeiture. Here, 7 (including premium) have been paid per share for 500 shares, so 500 shares x 7 = 3,500.

If 500 Shares of 10 Issued at a Premium of 1