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Standard XII
Accountancy
Forfeiture of Shares-Issued at Par
Failure to pa...
Question

Failure to pay call money results in of shares

A
allotment
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B
reissue
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C
application
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D
forfeiture
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Solution

The correct option is D forfeiture
Failure to pay call money results in forfeiture of shares. The non-payment of call on shares amounts to a breach of contract by the shareholder, and therefore as per the terms and conditions of the issue of shares and after allowing the shareholder prescribed time and opportunity, if he still fails to pay the money due, the company can forfeit the shares of that shareholder

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Q.

Failure to pay call money results in ____________.


Q. Z Ltd. issued 20,000 Equity Shares of ₹ 10 each at par payable: On application ₹ 2 per share; on allotment ₹ 3 per share; on first call ₹ 3 per share; on second and final call ₹ 2 per share .
Mr Gupta was allotted 100 shares . Pass necessary journal entry relating to the forfeiture of shares in each of the following alternative cases:
Case I If Mr Gupta failed to pay the allotment money and his shares were forfeited.
Case II If Mr Gupta failed to pay allotment money and on his subsequent failure to pay the first call , his shares were forfeited.
Case III If Mr Gupta failed to pay the first call and on his subsequent failure to pay the second and final call, his shares were forfeited.
Q. Alpha Ltd. issued 20,000 Equity Shares of ₹ 10 each at par payable: On application ₹ 2 per share; on allotment ₹ 3 per share; on first call ₹ 3 per share; on second and final call ₹ 2 per share.
Mr. Gupta was allotted 100 shares. Pass necessary Journal entry relating to the forfeiture of shares in each of the following alternative cases:
Case I If Mr. Gupta failed to pay the allotment money and his shares were immediately forfeited.
Case II If Mr. Gupta failed to pay allotment money and on his subsequent failure to pay the first call, his shares were forfeited.
Case III If Mr. Gupta failed to pay the first call and on his subsequent failure to pay the second and final call, his shares were forfeited.
Q. Forfeiture of shares results in compulsory termination of _____________ due to non-payment of allotment/call money.
Q.

Money that people have to pay to the government is called ____.


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Forfeiture of Shares-Issued at Par
Standard XII Accountancy
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