When shares are forfeited, the Share Capital Account is debited by: MCQ with Answer and Explanation

When shares are forfeited, the Share Capital Account is debited by:
A. Face value of shares
B. Paid up value of shares
C. Issue price of shares
D. Called up value of shares
Answer: Option D
Solution (By JKSSB Mock Tests)
Upon forfeiture, the share capital account must be reduced (debited) by the amount that was called up by the company until that date.

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