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The directors of ABC Ltd. forfeited 70,000 shares of Rs. 10 each, Rs. 10 called up for non payment of final call of Rs. 1 per share. Half of the forfeited shares were reissued at Rs. 20 per share fully paid up. On reissue of forfeited shares, the following amount will be transferred to thr Capital Reserve Account.?
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The directors of ABC Ltd. forfeited 70,000 shares of Rs. 10 each, Rs. ...
Reissue of Forfeited Shares and Transfer to Capital Reserve Account
The reissue of forfeited shares involves the sale of shares that were previously forfeited due to non-payment of calls. The amount received from the reissue of the forfeited shares will be transferred to the capital reserve account. The following are the details:
Forfeiture of Shares
- ABC Ltd. forfeited 70,000 shares of Rs. 10 each, Rs. 10 called up for non-payment of final call of Rs. 1 per share.
- The amount of Rs. 1 per share was not paid by the shareholders, and hence, the company forfeited the shares.
Reissue of Forfeited Shares
- Half of the forfeited shares, i.e., 35,000 shares were reissued at Rs. 20 per share fully paid up.
- The amount received from the reissue of the forfeited shares will be transferred to the capital reserve account.
Amount Transferred to Capital Reserve Account
- The amount transferred to the capital reserve account will be the difference between the amount received from the reissue of the forfeited shares and the amount previously called up on the forfeited shares.
- In this case, the amount received from the reissue of 35,000 shares at Rs. 20 per share is Rs. 7,00,000.
- The amount previously called up on the forfeited shares was Rs. 70,000 (i.e., Rs. 1 per share).
- Therefore, the amount transferred to the capital reserve account will be Rs. 6,30,000 (i.e., Rs. 7,00,000 - Rs. 70,000).
- This amount will be shown as a credit in the capital reserve account in the balance sheet of ABC Ltd.
In conclusion, the reissue of forfeited shares involves the sale of shares that were previously forfeited due to non-payment of calls. The amount received from the reissue of the forfeited shares is transferred to the capital reserve account, which is shown as a credit in the balance sheet.
The reissue of forfeited shares involves the sale of shares that were previously forfeited due to non-payment of calls. The amount received from the reissue of the forfeited shares will be transferred to the capital reserve account. The following are the details:
Forfeiture of Shares
- ABC Ltd. forfeited 70,000 shares of Rs. 10 each, Rs. 10 called up for non-payment of final call of Rs. 1 per share.
- The amount of Rs. 1 per share was not paid by the shareholders, and hence, the company forfeited the shares.
Reissue of Forfeited Shares
- Half of the forfeited shares, i.e., 35,000 shares were reissued at Rs. 20 per share fully paid up.
- The amount received from the reissue of the forfeited shares will be transferred to the capital reserve account.
Amount Transferred to Capital Reserve Account
- The amount transferred to the capital reserve account will be the difference between the amount received from the reissue of the forfeited shares and the amount previously called up on the forfeited shares.
- In this case, the amount received from the reissue of 35,000 shares at Rs. 20 per share is Rs. 7,00,000.
- The amount previously called up on the forfeited shares was Rs. 70,000 (i.e., Rs. 1 per share).
- Therefore, the amount transferred to the capital reserve account will be Rs. 6,30,000 (i.e., Rs. 7,00,000 - Rs. 70,000).
- This amount will be shown as a credit in the capital reserve account in the balance sheet of ABC Ltd.
In conclusion, the reissue of forfeited shares involves the sale of shares that were previously forfeited due to non-payment of calls. The amount received from the reissue of the forfeited shares is transferred to the capital reserve account, which is shown as a credit in the balance sheet.
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The directors of ABC Ltd. forfeited 70,000 shares of Rs. 10 each, Rs. 10 called up for non payment of final call of Rs. 1 per share. Half of the forfeited shares were reissued at Rs. 20 per share fully paid up. On reissue of forfeited shares, the following amount will be transferred to thr Capital Reserve Account.?
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The directors of ABC Ltd. forfeited 70,000 shares of Rs. 10 each, Rs. 10 called up for non payment of final call of Rs. 1 per share. Half of the forfeited shares were reissued at Rs. 20 per share fully paid up. On reissue of forfeited shares, the following amount will be transferred to thr Capital Reserve Account.? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about The directors of ABC Ltd. forfeited 70,000 shares of Rs. 10 each, Rs. 10 called up for non payment of final call of Rs. 1 per share. Half of the forfeited shares were reissued at Rs. 20 per share fully paid up. On reissue of forfeited shares, the following amount will be transferred to thr Capital Reserve Account.? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for The directors of ABC Ltd. forfeited 70,000 shares of Rs. 10 each, Rs. 10 called up for non payment of final call of Rs. 1 per share. Half of the forfeited shares were reissued at Rs. 20 per share fully paid up. On reissue of forfeited shares, the following amount will be transferred to thr Capital Reserve Account.?.
The directors of ABC Ltd. forfeited 70,000 shares of Rs. 10 each, Rs. 10 called up for non payment of final call of Rs. 1 per share. Half of the forfeited shares were reissued at Rs. 20 per share fully paid up. On reissue of forfeited shares, the following amount will be transferred to thr Capital Reserve Account.? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about The directors of ABC Ltd. forfeited 70,000 shares of Rs. 10 each, Rs. 10 called up for non payment of final call of Rs. 1 per share. Half of the forfeited shares were reissued at Rs. 20 per share fully paid up. On reissue of forfeited shares, the following amount will be transferred to thr Capital Reserve Account.? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for The directors of ABC Ltd. forfeited 70,000 shares of Rs. 10 each, Rs. 10 called up for non payment of final call of Rs. 1 per share. Half of the forfeited shares were reissued at Rs. 20 per share fully paid up. On reissue of forfeited shares, the following amount will be transferred to thr Capital Reserve Account.?.
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The directors of ABC Ltd. forfeited 70,000 shares of Rs. 10 each, Rs. 10 called up for non payment of final call of Rs. 1 per share. Half of the forfeited shares were reissued at Rs. 20 per share fully paid up. On reissue of forfeited shares, the following amount will be transferred to thr Capital Reserve Account.?, a detailed solution for The directors of ABC Ltd. forfeited 70,000 shares of Rs. 10 each, Rs. 10 called up for non payment of final call of Rs. 1 per share. Half of the forfeited shares were reissued at Rs. 20 per share fully paid up. On reissue of forfeited shares, the following amount will be transferred to thr Capital Reserve Account.? has been provided alongside types of The directors of ABC Ltd. forfeited 70,000 shares of Rs. 10 each, Rs. 10 called up for non payment of final call of Rs. 1 per share. Half of the forfeited shares were reissued at Rs. 20 per share fully paid up. On reissue of forfeited shares, the following amount will be transferred to thr Capital Reserve Account.? theory, EduRev gives you an
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