Sort the following items in the order of occurrence of the event for forfeiture of shares.

Application of share

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Allotment of share

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Non-payment of calls

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Forfeiture of share

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Solution

The events occur in the following order
for forfeiture of shares:

Shareholders have to apply for shares.

Company allot shares to shareholders.

Shareholders may default in the payment of call money.

Due to default in the payment of

call money, there will be forfeiture of shares

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Similar questions

Q. Forfeiture of shares results in compulsory termination of _____________ due to non-payment of allotment/call money.

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.

Ashoka Limited Company which had issued equity shares of ₹.20 each at a premium of ₹. 4 per share, forfeited 1,000 shares for non-payment of final call of ₹.2 per share. 400 of the forfeited shares were reissued at ₹.14 per share out of the remaining shares of 200 shares reissued at ₹.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. X Ltd . forfeited 100 shares of ₹ 10 each (₹ 8 called-up) issued at a premium of ₹ 2 per share to Mr. R, on which he had paid applications money of ₹ 5 per share , for non-payment of allotment money of ₹ 5 per share (including premium). Out of these, 70 shares were reissued to Mr . Sanjay as ₹ 8 called-up for ₹ 7 per share. Give necessary journal entries relating to forfeiture and reissue of shares.

Q. Balance of share forfeiture account (before re-issue of such shares) is shown in the balance sheet under the item ___________________.

Bhagwati Ltd. invited applications for issuing 2,00,000 equity shares of Rs 10 each. The amount were payable as follows :

On Application --Rs 3 per share.

On allotment --Rs 5 per share.

On first and final call -- Rs 2 per share.

Application were received for 3,00,000 shares and pro-rata allotment was made to all the applicants. Money overpaid on application was adjusted towards allotment money. B, who was allotted 3,000 shares, 2,500 shares were reissued as fully paid up @ Rs 8 per share.

Pass necessary journal entries to record the above transactions in the books of Bhagwati Ltd.

(a) A company forfeited 200, shares of Rs 20 each, Rs 15 per share called up on which Rs 10 per share had been paid Directors reissued all the forfeited shares to B as Rs 15 per share paid up, for a payment of Rs 10 each . Give journal entries in the books of the company for forfeiture and re-issue of shares.

(b) A Ltd. forfeited 100 equity shares of the face value of Rs 10 each, for the non-payment of first call of Rs 2 per share. Rs 6 per share had already been called and paid. These shares were subsequently re-issued as fully paid at the rate of Rs 7 per share. Give journal entries in the books of the company for forfeiture and re-issue of shares.

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Sort the following items in the order of occurrence of the event for forfeiture of shares.

The events occur in the following order for forfeiture of shares: Shareholders have to apply for shares. Company allot shares to shareholders. Shareholders may default in the payment of call money. Due to default in the payment of call money, there will be forfeiture of shares

The events occur in the following order
for forfeiture of shares:

Shareholders have to apply for shares.

Company allot shares to shareholders.

Shareholders may default in the payment of call money.

Due to default in the payment of

call money, there will be forfeiture of shares