CameraIcon

SearchIcon

MyQuestionIcon

2

You visited us 2 times! Enjoying our articles? Unlock Full Access!

Forfeiture of Shares-Issued at Par

What is the d...

Question

What is the difference between 'shares forfeited' and 'share forfieture'?

Open in App

Solution

Dear Student,

When shares are forfeited or cancelled , it is called forfeiture of shares and amount received at the time of forfeiture is transferred to share forfeited A/c.
Regards

Suggest Corrections

thumbs-up

0

Similar questions

Whenever securities premium is received and the shares are forfeited, what will be the treatment in Share Forfeiture A/c?

Q. Any balance in the share forfeiture account after all the forfeited share are re-issued should be:

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. 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. 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.

View More

Join BYJU'S Learning Program

similar_icon

Related Videos

lock

Forfeiture of Shares

ACCOUNTANCY

Watch in App

explore_more_icon

Explore more

Forfeiture of Shares-Issued at Par

Standard XII Accountancy

Join BYJU'S Learning Program

CrossIcon