Match List-I with List-II.
Choose the correct answer from the options given below:
(A)- (I), (B)- (II), (C)- (III), (D)- (IV)
(A)- (IV), (B)- (III), (C)- (II), (D)- (I)
(A)- (I), (B)- (II), (C)- (IV), (D)- (III)
(A)- (III), (B)- (IV), (C)- (I), (D)- (II)
(A)- (IV), (B)- (III), (C)- (II), (D)- (I)
In this problem, we need to match the accounts to the correct descriptions of the amounts to be debited or credited when shares are forfeited.
(A) Share Capital Account: When shares are forfeited, the Share Capital Account is debited with the amount called up on those shares. Hence, the correct match for Share Capital Account is (IV)- Debited with amount called up.
(B) Share Forfeited Account: The Share Forfeited Account represents the amount forfeited on shares that were not paid for. Therefore, this account is credited with the amount not received on the shares. Thus, the correct match is (III)- Credited with amount received
towards share capital.
(C) Calls-in-arrears Account: This account represents the amounts due but not received from shareholders. Therefore, the Calls-in-arrears account is debited with the amount not received. Thus, the correct match is (II)- Credited with amount not received.
(D) Securities Premium Account: The Securities Premium Account is credited with the amount received from shareholders over and above the face value of shares. When shares are forfeited, this account is debited with the amount called up but not paid. Hence, the correct match for Securities Premium Account is (I)- Debited with amount not received.
Therefore, the correct matching is:- (A)- (IV)- (B)- (III)- (C)- (II)- (D)- (I)