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Disclosure of Share Capital

Amount of for...

Question

Amount of forfeited shares is shown by ________ to subscribed capital.

A

adding

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B

subtracting

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C

reducing

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D

none of these

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Solution

The correct option is A
adding

Amount of forfeited shares is shown by adding it to subscribed capital.

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Similar questions

Q. The Hindustan Manufacturing Ltd. had a total subscribed capital of ₹ 10,00,000 in Equity Shares of ₹ 10 each of which ₹ 7.50 were called-up. A final call of ₹ 2.50 was made and all amount paid except two calls of ₹ 2.50 each in respect of 100 shares held by D . These shares were forfeited and reissued at ₹ 8 per share .
Pass necessary journal entries (including that of cash) to record the transactions of final call , forfeiture of shares and reissue of forfeited shares . Also, prepare the Balance Sheet of the company.

Whenever securities premium is received and the shares are forfeited, what will be the treatment in Share Forfeiture A/c?

Q. At the time of forfeiture of shares which were originally issued at a discount, the accounting entry will be
I. A Debit Share capital account with the called-up value of shares forfeited.
II. A Credit Share forfeiture account with the amount received on forfeited shares.
III. A Credit Discount on issue of shares with the amount of discount allowed on forfeited shares,
IV. A Credit Calls-in-arrears with the amount due but not paid on forfeited shares.

Q. A company has issued

10, 000

R s . 20

each and amount has been demanded as under:
On application -

R s . 5

R s . 7

1 s t

R s . 6

2 n d

and Final Call -

R s . 2

A shareholder holding

400

shares paid only application money and his shares have been forfeited. On reissue of these shares @

R s . 16

per share, amount debited to shares forfeited account is _____________ .

Q. When shares are issued at a premium and the amount is already received by company. Later on, when such shares are forfeited.

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