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Journal Entries for Re-Issue of Shares

Gain to the c...

Question

Gain to the company on forfeited shares are credited to account.

A

bank

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B

share capital

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C

share allotment

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D

share forfeiture

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Solution

The correct option is D share forfeiture
Gain to the company on forfeited shares are credited to share forfeiture account.

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Similar questions

Gain to the company on forfeited shares are credited to which account?

Q. J Ltd. Reissued

2, 000

shares which were forfeited by crediting share forfeited by credited share forfeiture account by Rs.

3000

. These shares were reissued at Rs.

9

Per share. The amount transferred to capital reserve will be.

Q. A Ltd. issued shares of

R s . 10

each at a discount of

10

%. Mr. B purchased

60

shares and paid

R s . 2

on application but did not pay the allotment money of

R s . 3

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

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

Q. At the time of forfeiture of shares which were originally issued at a discount, the accounting entry will be
I. A Debit Share capital account with the called-up value of shares forfeited.
II. A Credit Share forfeiture account with the amount received on forfeited shares.
III. A Credit Discount on issue of shares with the amount of discount allowed on forfeited shares,
IV. A Credit Calls-in-arrears with the amount due but not paid on forfeited shares.

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Journal Entries for Re-Issue of Shares

Standard XII Accountancy

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