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A company forfeited 4,000 shares of R10 each on which application money of 3 has been paid. Out of these 2.000 shares were reissued as fully paid up and R6,000 has been transferred to capital reserve?
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A company forfeited 4,000 shares of R10 each on which application mone...
Based on the information provided, the following information can be inferred:
- The company had 4,000 shares that were forfeited, and each share had a value of R10.
- The application money paid for these shares was R3 per share.
- Of the 4,000 forfeited shares, 2,000 were reissued as fully paid up.
- The company transferred R6,000 to its capital reserve.
It is not possible to determine the exact financial impact of these events without more information about the company's financial situation and the purpose of the capital reserve.
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A company forfeited 4,000 shares of R10 each on which application mone...
Forfeiture of Shares:
When a shareholder fails to pay the due amount on shares, the company can forfeit those shares. This means that the shareholder loses ownership of the shares, and the company can sell them to recover the unpaid amount.
Forfeiture of 4,000 Shares:
In this case, the company forfeited 4,000 shares of R10 each on which application money of 3 has been paid. This means that the shareholders had paid only R3 per share, instead of the full R10 per share. As a result, the company forfeited these shares to recover the unpaid amount.
Reissue of 2,000 Shares:
Out of the forfeited shares, the company reissued 2,000 shares as fully paid up. This means that the new shareholders paid the full R10 per share, and as a result, they own the shares without any further liability.
Transfer of R6,000 to Capital Reserve:
The remaining amount of R6,000 from the forfeited shares was transferred to capital reserve. Capital reserve is a reserve created out of profits, and it cannot be distributed as dividends. This transfer indicates that the company has decided to use this amount for future investments or expansion plans.
Conclusion:
Forfeiture of shares can be a way for companies to recover unpaid amounts from shareholders. In this case, the company forfeited shares on which only a part of the due amount was paid, and reissued some of them as fully paid up. Additionally, the company transferred the remaining amount to capital reserve, indicating its intention to use it for future investments or expansion plans.
When a shareholder fails to pay the due amount on shares, the company can forfeit those shares. This means that the shareholder loses ownership of the shares, and the company can sell them to recover the unpaid amount.
Forfeiture of 4,000 Shares:
In this case, the company forfeited 4,000 shares of R10 each on which application money of 3 has been paid. This means that the shareholders had paid only R3 per share, instead of the full R10 per share. As a result, the company forfeited these shares to recover the unpaid amount.
Reissue of 2,000 Shares:
Out of the forfeited shares, the company reissued 2,000 shares as fully paid up. This means that the new shareholders paid the full R10 per share, and as a result, they own the shares without any further liability.
Transfer of R6,000 to Capital Reserve:
The remaining amount of R6,000 from the forfeited shares was transferred to capital reserve. Capital reserve is a reserve created out of profits, and it cannot be distributed as dividends. This transfer indicates that the company has decided to use this amount for future investments or expansion plans.
Conclusion:
Forfeiture of shares can be a way for companies to recover unpaid amounts from shareholders. In this case, the company forfeited shares on which only a part of the due amount was paid, and reissued some of them as fully paid up. Additionally, the company transferred the remaining amount to capital reserve, indicating its intention to use it for future investments or expansion plans.
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A company forfeited 4,000 shares of R10 each on which application money of 3 has been paid. Out of these 2.000 shares were reissued as fully paid up and R6,000 has been transferred to capital reserve?
Question Description
A company forfeited 4,000 shares of R10 each on which application money of 3 has been paid. Out of these 2.000 shares were reissued as fully paid up and R6,000 has been transferred to capital reserve? for Class 12 2024 is part of Class 12 preparation. The Question and answers have been prepared according to the Class 12 exam syllabus. Information about A company forfeited 4,000 shares of R10 each on which application money of 3 has been paid. Out of these 2.000 shares were reissued as fully paid up and R6,000 has been transferred to capital reserve? covers all topics & solutions for Class 12 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A company forfeited 4,000 shares of R10 each on which application money of 3 has been paid. Out of these 2.000 shares were reissued as fully paid up and R6,000 has been transferred to capital reserve?.
A company forfeited 4,000 shares of R10 each on which application money of 3 has been paid. Out of these 2.000 shares were reissued as fully paid up and R6,000 has been transferred to capital reserve? for Class 12 2024 is part of Class 12 preparation. The Question and answers have been prepared according to the Class 12 exam syllabus. Information about A company forfeited 4,000 shares of R10 each on which application money of 3 has been paid. Out of these 2.000 shares were reissued as fully paid up and R6,000 has been transferred to capital reserve? covers all topics & solutions for Class 12 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A company forfeited 4,000 shares of R10 each on which application money of 3 has been paid. Out of these 2.000 shares were reissued as fully paid up and R6,000 has been transferred to capital reserve?.
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