Cancellation of the membership of the shareholder in a company is known as ___

None of these

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Reissue of shares

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Forfeiture of shares

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Buy back of shares

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Solution

The correct option is C
Forfeiture of shares

Cancellation of the membership of the shareholder in a company is known as forfeiture of shares.

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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.

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Q. Ashoka Limited Company which had issued equity shares of Rs.20 each at a premium of Rs. 4 per share, forfeited 1,000 shares for non-payment of final call of Rs.2 per share. 400 of the forfeited shares were 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 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.

Q. Voluntary return of shares by shareholders to the company for cancellation is called__________.

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Cancellation of the membership of the shareholder in a company is known as ___

The correct option is C Forfeiture of shares Cancellation of the membership of the shareholder in a company is known as forfeiture of shares.

The correct option is C
Forfeiture of shares

Cancellation of the membership of the shareholder in a company is known as forfeiture of shares.