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Application 
 
Allotment  
 
 
First Call 
Second and 
Final Call 
? 
? 
? 
? 
Issue of 
Shares 
At Par 
At 
Premium 
At 
Discount 
Page 3


 
Application 
 
Allotment  
 
 
First Call 
Second and 
Final Call 
? 
? 
? 
? 
Issue of 
Shares 
At Par 
At 
Premium 
At 
Discount 
 
Application 
 
Allotment  
 
 
First Call 
Second and 
Final Call 
Rahul limited intends to  
issue 5000 shares of Rs. 10 each at par,  
payable as 
? 2 on application 
? 4 on allotment  
? 2 on first call  
? 2 on final call  
? 2 
? 4 
? 2 
? 2 
Issue of 
Shares 
At Par 
At 
Premium 
At 
Discount 
Page 4


 
Application 
 
Allotment  
 
 
First Call 
Second and 
Final Call 
? 
? 
? 
? 
Issue of 
Shares 
At Par 
At 
Premium 
At 
Discount 
 
Application 
 
Allotment  
 
 
First Call 
Second and 
Final Call 
Rahul limited intends to  
issue 5000 shares of Rs. 10 each at par,  
payable as 
? 2 on application 
? 4 on allotment  
? 2 on first call  
? 2 on final call  
? 2 
? 4 
? 2 
? 2 
Issue of 
Shares 
At Par 
At 
Premium 
At 
Discount 
 
Application 
 
Allotment  
 
 
First Call 
Second and 
Final Call 
Rahul limited intends to issue 5000 shares  
of Rs. 10 each at premium of 20% 
payable as 
? 2 on application 
? 6 on allotment  (including Premium) 
? 2 on first call  
? 2 on final call  
? 2 
? 4 + 2 
? 2 
? 2 
Issue of 
Shares 
At Par 
At 
Premium 
At 
Discount 
Page 5


 
Application 
 
Allotment  
 
 
First Call 
Second and 
Final Call 
? 
? 
? 
? 
Issue of 
Shares 
At Par 
At 
Premium 
At 
Discount 
 
Application 
 
Allotment  
 
 
First Call 
Second and 
Final Call 
Rahul limited intends to  
issue 5000 shares of Rs. 10 each at par,  
payable as 
? 2 on application 
? 4 on allotment  
? 2 on first call  
? 2 on final call  
? 2 
? 4 
? 2 
? 2 
Issue of 
Shares 
At Par 
At 
Premium 
At 
Discount 
 
Application 
 
Allotment  
 
 
First Call 
Second and 
Final Call 
Rahul limited intends to issue 5000 shares  
of Rs. 10 each at premium of 20% 
payable as 
? 2 on application 
? 6 on allotment  (including Premium) 
? 2 on first call  
? 2 on final call  
? 2 
? 4 + 2 
? 2 
? 2 
Issue of 
Shares 
At Par 
At 
Premium 
At 
Discount 
 
Application 
 
Allotment  
 
 
First Call 
Second and 
Final Call 
Rahul limited intends to issue 5000 shares  
of Rs. 10 each at discount of 10% 
payable as 
? 2 on application 
? 3 on allotment   
? 2 on first call  
? 2 on final call  
? 2 
? 4 - 1 
? 2 
? 2 
Issue of 
Shares 
At Par 
At 
Premium 
At 
Discount 
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FAQs on PPT - Forfeiture and Reissue of Shares - 1 - Principles and Practice of Accounting - CA Foundation

1. What is the concept of forfeiture and reissue of shares?
Ans. Forfeiture of shares refers to the cancellation of shares due to the non-payment of calls or any other breach of terms by the shareholder. Reissue of shares, on the other hand, is the process of selling the forfeited shares to new shareholders.
2. What are the reasons for the forfeiture of shares?
Ans. Shares can be forfeited due to various reasons such as non-payment of calls, non-compliance with terms and conditions of the share agreement, or failure to provide necessary documents within the specified time.
3. What happens to the forfeited shares after cancellation?
Ans. After the forfeiture of shares, the company can choose to reissue them to new shareholders. The reissued shares can be sold through private placement or public offer, depending on the company's decision.
4. How does the reissue of shares affect the existing shareholders?
Ans. The reissue of shares dilutes the ownership percentage of existing shareholders. As new shares are issued, the total number of shares increases, leading to a decrease in the proportionate ownership of existing shareholders.
5. Can a shareholder reclaim forfeited shares?
Ans. In most cases, once shares are forfeited, the shareholder loses all rights and claims over those shares. However, some companies may have specific provisions or policies for shareholders to reclaim their forfeited shares under certain circumstances. It is advisable to refer to the company's articles of association for more information on the reclaiming process.
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