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B ltd forfeited 100share of RS 10 each RS 8 per share being called up which were issued at a discount of RS 1 per share for non-payment of first call of RS 3 per share of these forfeited share 80 share were reissued subsequently by the company at RS 5 as RS 8 paid up per share.give journal entries for the forfeiture and reissue of share?
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B ltd forfeited 100share of RS 10 each RS 8 per share being called up ...
Forfeiture of Shares
When a shareholder fails to pay the call money on shares, the company has the right to forfeit those shares. The forfeiture of shares involves cancelling the shares and debiting the shareholder's account with the amount already paid on those shares. The journal entries for the forfeiture of shares are as follows:
1. Forfeiture of Shares
- Share Capital Account (Nominal Account) Dr. with the amount of Share Capital (Nominal Account) for the forfeited shares
- Calls in Arrears Account (Personal Account) Dr. with the amount of calls in arrears on forfeited shares
- Shareholder's Account (Personal Account) Cr. with the amount already paid on forfeited shares
2. Forfeited Shares Reissued
- Forfeited Shares Account (Real Account) Dr. with the nominal value of the forfeited shares
- Share Capital Account (Nominal Account) Cr. with the nominal value of the forfeited shares
- Shareholder's Account (Personal Account) Dr. with the amount already paid on forfeited shares
- Share Capital Account (Nominal Account) Cr. with the amount already paid on forfeited shares
- Calls in Arrears Account (Personal Account) Cr. with the amount of calls in arrears on forfeited shares
- Shareholder's Account (Personal Account) Cr. with the amount received on reissue of shares
Reissue of Shares
After the shares are forfeited, the company can reissue those shares to new shareholders. The reissue of shares involves transferring the forfeited shares to the new shareholder and updating the share capital and shareholder's accounts accordingly. The journal entries for the reissue of shares are as follows:
1. Reissue of Shares
- Bank Account (Real Account) Dr. with the amount received on reissue of shares
- Shareholder's Account (Personal Account) Cr. with the amount received on reissue of shares
2. Transfer of Forfeited Shares
- Forfeited Shares Account (Real Account) Dr. with the nominal value of the forfeited shares
- Shareholder's Account (Personal Account) Cr. with the nominal value of the forfeited shares
3. Updating Share Capital Account
- Share Capital Account (Nominal Account) Dr. with the nominal value of the forfeited shares
- Calls in Arrears Account (Personal Account) Dr. with the amount of calls in arrears on forfeited shares
- Shareholder's Account (Personal Account) Cr. with the amount already paid on forfeited shares
- Share Capital Account (Nominal Account) Cr. with the amount already paid on forfeited shares
By following these journal entries, the company can properly account for the forfeiture and reissue of shares, ensuring accurate recording of the financial transactions and maintaining the integrity of the company's share capital.
When a shareholder fails to pay the call money on shares, the company has the right to forfeit those shares. The forfeiture of shares involves cancelling the shares and debiting the shareholder's account with the amount already paid on those shares. The journal entries for the forfeiture of shares are as follows:
1. Forfeiture of Shares
- Share Capital Account (Nominal Account) Dr. with the amount of Share Capital (Nominal Account) for the forfeited shares
- Calls in Arrears Account (Personal Account) Dr. with the amount of calls in arrears on forfeited shares
- Shareholder's Account (Personal Account) Cr. with the amount already paid on forfeited shares
2. Forfeited Shares Reissued
- Forfeited Shares Account (Real Account) Dr. with the nominal value of the forfeited shares
- Share Capital Account (Nominal Account) Cr. with the nominal value of the forfeited shares
- Shareholder's Account (Personal Account) Dr. with the amount already paid on forfeited shares
- Share Capital Account (Nominal Account) Cr. with the amount already paid on forfeited shares
- Calls in Arrears Account (Personal Account) Cr. with the amount of calls in arrears on forfeited shares
- Shareholder's Account (Personal Account) Cr. with the amount received on reissue of shares
Reissue of Shares
After the shares are forfeited, the company can reissue those shares to new shareholders. The reissue of shares involves transferring the forfeited shares to the new shareholder and updating the share capital and shareholder's accounts accordingly. The journal entries for the reissue of shares are as follows:
1. Reissue of Shares
- Bank Account (Real Account) Dr. with the amount received on reissue of shares
- Shareholder's Account (Personal Account) Cr. with the amount received on reissue of shares
2. Transfer of Forfeited Shares
- Forfeited Shares Account (Real Account) Dr. with the nominal value of the forfeited shares
- Shareholder's Account (Personal Account) Cr. with the nominal value of the forfeited shares
3. Updating Share Capital Account
- Share Capital Account (Nominal Account) Dr. with the nominal value of the forfeited shares
- Calls in Arrears Account (Personal Account) Dr. with the amount of calls in arrears on forfeited shares
- Shareholder's Account (Personal Account) Cr. with the amount already paid on forfeited shares
- Share Capital Account (Nominal Account) Cr. with the amount already paid on forfeited shares
By following these journal entries, the company can properly account for the forfeiture and reissue of shares, ensuring accurate recording of the financial transactions and maintaining the integrity of the company's share capital.
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B ltd forfeited 100share of RS 10 each RS 8 per share being called up ...
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B ltd forfeited 100share of RS 10 each RS 8 per share being called up which were issued at a discount of RS 1 per share for non-payment of first call of RS 3 per share of these forfeited share 80 share were reissued subsequently by the company at RS 5 as RS 8 paid up per share.give journal entries for the forfeiture and reissue of share?
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B ltd forfeited 100share of RS 10 each RS 8 per share being called up which were issued at a discount of RS 1 per share for non-payment of first call of RS 3 per share of these forfeited share 80 share were reissued subsequently by the company at RS 5 as RS 8 paid up per share.give journal entries for the forfeiture and reissue of share? for B Com 2024 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about B ltd forfeited 100share of RS 10 each RS 8 per share being called up which were issued at a discount of RS 1 per share for non-payment of first call of RS 3 per share of these forfeited share 80 share were reissued subsequently by the company at RS 5 as RS 8 paid up per share.give journal entries for the forfeiture and reissue of share? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for B ltd forfeited 100share of RS 10 each RS 8 per share being called up which were issued at a discount of RS 1 per share for non-payment of first call of RS 3 per share of these forfeited share 80 share were reissued subsequently by the company at RS 5 as RS 8 paid up per share.give journal entries for the forfeiture and reissue of share?.
B ltd forfeited 100share of RS 10 each RS 8 per share being called up which were issued at a discount of RS 1 per share for non-payment of first call of RS 3 per share of these forfeited share 80 share were reissued subsequently by the company at RS 5 as RS 8 paid up per share.give journal entries for the forfeiture and reissue of share? for B Com 2024 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about B ltd forfeited 100share of RS 10 each RS 8 per share being called up which were issued at a discount of RS 1 per share for non-payment of first call of RS 3 per share of these forfeited share 80 share were reissued subsequently by the company at RS 5 as RS 8 paid up per share.give journal entries for the forfeiture and reissue of share? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for B ltd forfeited 100share of RS 10 each RS 8 per share being called up which were issued at a discount of RS 1 per share for non-payment of first call of RS 3 per share of these forfeited share 80 share were reissued subsequently by the company at RS 5 as RS 8 paid up per share.give journal entries for the forfeiture and reissue of share?.
Solutions for B ltd forfeited 100share of RS 10 each RS 8 per share being called up which were issued at a discount of RS 1 per share for non-payment of first call of RS 3 per share of these forfeited share 80 share were reissued subsequently by the company at RS 5 as RS 8 paid up per share.give journal entries for the forfeiture and reissue of share? in English & in Hindi are available as part of our courses for B Com.
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B ltd forfeited 100share of RS 10 each RS 8 per share being called up which were issued at a discount of RS 1 per share for non-payment of first call of RS 3 per share of these forfeited share 80 share were reissued subsequently by the company at RS 5 as RS 8 paid up per share.give journal entries for the forfeiture and reissue of share?, a detailed solution for B ltd forfeited 100share of RS 10 each RS 8 per share being called up which were issued at a discount of RS 1 per share for non-payment of first call of RS 3 per share of these forfeited share 80 share were reissued subsequently by the company at RS 5 as RS 8 paid up per share.give journal entries for the forfeiture and reissue of share? has been provided alongside types of B ltd forfeited 100share of RS 10 each RS 8 per share being called up which were issued at a discount of RS 1 per share for non-payment of first call of RS 3 per share of these forfeited share 80 share were reissued subsequently by the company at RS 5 as RS 8 paid up per share.give journal entries for the forfeiture and reissue of share? theory, EduRev gives you an
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