[amp_mcq option1=”nominal value of forfeited shares” option2=”paid-up amount of forfeited shares” option3=”called-up amount on forfeited shares” option4=”forfeited amount of shares” correct=”option4″]<\/p>\n
The correct answer is: D. forfeited amount of shares<\/strong><\/p>\n When shares are forfeited, the share capital account is debited by the forfeited amount of shares<\/strong>. This is the amount that the shareholders have failed to pay on the shares that they have been allotted. The forfeited amount is usually the called-up amount<\/strong> on the shares, which is the amount that the shareholders have agreed to pay on the shares when they were allotted. However, the forfeited amount may be less than the called-up amount if the shareholders have paid a part of the called-up amount on the shares.<\/p>\n The following are the explanations of each option:<\/p>\n A. nominal value of forfeited shares<\/strong> B. paid-up amount of forfeited shares<\/strong> C. called-up amount on forfeited shares<\/strong> D. forfeited amount of shares<\/strong> [amp_mcq option1=”nominal value of forfeited shares” option2=”paid-up amount of forfeited shares” option3=”called-up amount on forfeited shares” option4=”forfeited amount of shares” correct=”option4″]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[85],"tags":[],"class_list":["post-43469","post","type-post","status-publish","format-standard","hentry","category-accounting","no-featured-image-padding"],"yoast_head":"\n\n
\nThe nominal value of a share is the face value of the share. It is the amount that is printed on the share certificate. The nominal value of a share is not usually relevant when shares are forfeited.<\/p>\n<\/li>\n
\nThe paid-up amount of a share is the amount that the shareholders have paid on the share. It is usually the same as the nominal value of the share, but it may be more or less than the nominal value if the shareholders have paid a part of the called-up amount on the shares.<\/p>\n<\/li>\n
\nThe called-up amount on a share is the amount that the shareholders have agreed to pay on the share. It is usually the nominal value of the share, but it may be more or less than the nominal value if the shareholders have paid a part of the called-up amount on the shares.<\/p>\n<\/li>\n
\nThe forfeited amount of a share is the amount that the shareholders have failed to pay on the shares that they have been allotted. It is usually the called-up amount on the shares, but it may be less than the called-up amount if the shareholders have paid a part of the called-up amount on the shares.<\/p>\n<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"