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Standard XII

Accountancy

Forfeiture of Shares-Issued at Par

Forfeiture of...

Question

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

cancel the shares

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forfeit the money that has been paid so far

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cancel the shares and forfeit the money that has been paid so far

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None of these

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Solution

The correct option is C
cancel the shares and forfeit the money that has been paid so far

Forfeiture of shares is the action taken by the company to cancel the shares and forfeit the money that has been paid so far.

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Similar questions

Q. A company has issued

10, 000

shares of

R s . 20

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

R s . 5

On allotment -

R s . 7

1 s t

Call -

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2 n d

and Final Call -

R s . 2

A shareholder holding

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

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

Q. The Directors of a company forfeited 300 shares of ₹ 10 each issued at a premium of ₹ 3 per share , for the non-payment of the first call money of ₹ 2 per share . The final call of ₹ 2 per share has not been made. Half the forfeited shares were reissued at ₹ 1,500 as fully paid-up. Record the journal entries for the forfeiture and reissue of shares.

Q. A Company forfeited

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per share was paid. The entry for forfeiture is ___________.

Q. A company has forfeited

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each. The shareholder has paid

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per share on these shares and balance of

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has not been paid by him. Company can reissue these on maximum discount of

Q. A Ltd. issued shares of

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each at a discount of

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%. Mr. B purchased

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on application but did not pay the allotment money of

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. If the company forfeited his entire shares, the forfeiture account will be credited by _____________.

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

The correct option is C cancel the shares and forfeit the money that has been paid so far Forfeiture of shares is the action taken by the company to cancel the shares and forfeit the money that has been paid so far.

The correct option is C
cancel the shares and forfeit the money that has been paid so far

Forfeiture of shares is the action taken by the company to cancel the shares and forfeit the money that has been paid so far.