WebbEntry for forfeiture of shares : Share capital A/c Dr 5,400 ( 300 x 18 ) Number of share forfeited x Called up value. To Share allotment A/c 3,600 ( 300 x 12 ) Amount not paid on allotment. To Share first call A/c 600 ( 300 x 2 ) Amount not paid on first call. To Share forfeiture A/c 1,200 ( 300 x 4 ) Amount received on shares forfeited. WebbForfeiture of Shares If a shareholder, who is called upon to pay any call fails to pay the amount, even after sending several reminders, the company may forfeit his shares. …
Accounting Provisions for Forfeiture of Shares Company
Webb20 mars 2024 · A forfeited share is a share in a company that the owner loses (forfeits) by failing to meet the purchase requirements. Requirements may include paying an allotment or call money owed, or avoiding selling or transferring shares during a restricted period. harleenjabbal13 Follow Advertisement Advertisement Recommended WebbCorrect option is A) If a member fails to pay a valid call within the stipulated time, the company may sue him for recovery of the amount of the call after waiting for a … greatest ilonggo writer of the century
Forfeiture and Reissue of Shares - Learn Accounting: Notes, …
Webb9 apr. 2024 · But, if a shareholder's shares are forfeited because of late payment or nonpayment, that shareholder is no longer a member of the company's ownership group. … Webb1 nov. 2024 · What is the reissue of forfeited shares? Reissue of forfeited shares means selling of already issued shares to some other person or business. Reissue word does not mean to issue forfeited shares again in the share market rather than it means shares are sold to another person or company. Webbcall of ` 2 per share and second call of ` 3 per share. His shares were forfeited. Make the journal entry to record the forfeiture of shares. Solution : Journal Entry Date Particulars … greatest illinois basketball players