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Forfeiture of Shares

Forfeiture of...

Question

Forfeiture of shares is the action taken by a company to the shares.

A

allot

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B

reissue

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C

apply

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D

cancel

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Solution

The correct option is D cancel
Forfeiture of shares is the action taken by a company to cancel the shares. Failure to pay call money results in forfeiture of shares.

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Similar questions

Forfeiture of shares is the action taken by the company to ______________.

Q. In case of forfeiture, we debit share capital account by the total amount by the company so far for the forfeited shares.

Q. Asha Ltd, issued shares of Rs.

100

each at a premium of

25 %

mamta who has Rs.

2, 000

shares of Asha ltd. Failed Rs.

5

. Premium was taken at the company. On forfeiture of Mamta's shares, the amount to be debited to share Premium account will be.

Q. A company issued

5, 000

10

20 %

premium payable as follows: Application- Rs.

2

, allotment Rs.

5

(including premium) and first and Final Call Rs.

5

200

shares failed to pay the first and final call. His shares were forfeiture. Calculate the amount to be credited to share Forfeiture Account.

Q. A company forfeited

2, 000

10

9

which, were issued at par) held by A for non-payment of allotment money of Rs.

4

per share. The called up value per share was Rs.

9

. On forfeiture, the amount debited to share capital is?

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