Answer briefly the following question:
What is the minimum price at which a company can reissue its forfeited shares which were originally issued at par?

Open in App

Solution

Reissue of share is merely a sale of Forfeited Shares and not an allotment of shares. The forfeited shares can be reissued as per the provisions of Articles of the company.
The Re-issue price of forfeited shares must be at least equal to the difference between the paid up value of Re-issued Shares and the Amount Forfeited on Re-issue Shares. In other words, Re-issue price must not be less than the amount unpaid on Forfeited Shares.

Suggest Corrections

Similar questions

Can the company re-issue the forfeited shares at a price lower than the original issue price?

Q. If forfeited shares (which were originally issued at a discount) are reissued at a premium, the amount of such premium will be credited to ________________.

Q. Journalise the following transactions in the books Bhushan Oil Ltd.:

(a) 200 shares of Rs. 100 each issued at a premium of Rs. 10 were forfeited for the non-payment of allotment money of Rs. 60 per share. The first and final call of Rs. 20 per share on these shares were not made. The forfeited shares were reissued at Rs. 70 per share as fully paid-up.

(b) 150 shares of Rs. 10 each issued at a premium of Rs. 4 per share payable with allotment were forfeited for non-payment of allotment money of Rs. 8 per share including premium. The first and final calls of Rs. 4 per share were not made. The forfeited shares were reissued at Rs. 15 per share fully paid-up.

(c) 400 shares of Rs. 50 each issued at par were forfeited for non-payment of final call of Rs. 10 per share. These shares were reissued at Rs. 45 per share fully paid-up.

Q. If a shares of Rs.

10

on which Rs.

8

has been paid up is forfeited, it can be re-issued at the minimum price of ______.

Q. Ashoka Limited Company which had issued equity shares of Rs.20 each at a discount of Rs.4 per share. Forfeited 1,000 shares for non-payment of final call of Rs.4 per share. 400 of the forfeited shares are reissued at Rs.14 per share out of the remaining shares of 200 shares reissued at Rs.20 per share. Give journal entries for the forfeiture and reissue of shares and show the amount transferred to capital reserve and the balance in share forfeiture account.

Ashoka Limited Company which had issued equity shares of ₹.20 each at a premium of ₹. 4 per share, forfeited 1,000 shares for non-payment of final call of ₹.2 per share. 400 of the forfeited shares were reissued at ₹.14 per share out of the remaining shares of 200 shares reissued at ₹.20 per share. Give journal entries for the forfeiture and reissue of shares and show the amount transferred to capital reserve and the balance in Share Forfeiture Account.

Join BYJU'S Learning Program

Answer briefly the following question:What is the minimum price at which a company can reissue its forfeited shares which were originally issued at par?

Answer briefly the following question:
What is the minimum price at which a company can reissue its forfeited shares which were originally issued at par?