Multiple choice

If a shareholder does not pay his dues on allotment, for the amount due, there will be a

  1. credit balance in the share allotment account

  2. debited balance in the share forfeiture account

  3. credit balance in the share forfeiture account

  4. debit balance in the share allotment account
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Share allotment A/c Dr      (Amount due)         To share Capital Cash Dr                           (Amount Received) Call in Arrears Dr           (Amount due)         To share allotment  Thus, there will be debit balance in share allotment account.

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