UPSC Exam > UPSC Questions > Bhakti ltd.forfeited 100 equity shares of 10 ...
Start Learning for Free
Bhakti ltd.forfeited 100 equity shares of 10 each,₹6 called up on which the shareholder paid application and allotment of ₹5 per share.of these. 80 shares were reissued as fully paid up for 16 per share?
Most Upvoted Answer
Bhakti ltd.forfeited 100 equity shares of 10 each,₹6 called up on whic...
Forfeiture of Equity Shares:
- Bhakti Ltd. forfeited 100 equity shares of ₹10 each, with ₹6 called up.
- The shareholder paid ₹5 per share towards application and allotment.
Reissue of Shares:
- 80 shares were reissued as fully paid up for ₹16 per share.
Explanation:
- The company forfeited the shares when the shareholder failed to pay the remaining call amount of ₹1 per share.
- After forfeiting the shares, the company reissued them at a higher price of ₹16 per share.
- The reissued shares were considered as fully paid up, as the shareholders who purchased them paid the full amount at the time of application and allotment.
Impact on Company:
- Forfeiture of shares helps the company recover the unpaid amount from shareholders.
- Reissuing the forfeited shares at a higher price can bring additional capital to the company.
Accounting Entries:
- Forfeited Shares Account (Dr) ₹600
- Share Capital Account (Cr) ₹600
- Bank Account (Dr) ₹400
- Share Capital Account (Cr) ₹400
Conclusion:
- Forfeiture and reissue of shares can help companies manage their capital structure effectively and ensure shareholders fulfill their obligations.
- Bhakti Ltd. forfeited 100 equity shares of ₹10 each, with ₹6 called up.
- The shareholder paid ₹5 per share towards application and allotment.
Reissue of Shares:
- 80 shares were reissued as fully paid up for ₹16 per share.
Explanation:
- The company forfeited the shares when the shareholder failed to pay the remaining call amount of ₹1 per share.
- After forfeiting the shares, the company reissued them at a higher price of ₹16 per share.
- The reissued shares were considered as fully paid up, as the shareholders who purchased them paid the full amount at the time of application and allotment.
Impact on Company:
- Forfeiture of shares helps the company recover the unpaid amount from shareholders.
- Reissuing the forfeited shares at a higher price can bring additional capital to the company.
Accounting Entries:
- Forfeited Shares Account (Dr) ₹600
- Share Capital Account (Cr) ₹600
- Bank Account (Dr) ₹400
- Share Capital Account (Cr) ₹400
Conclusion:
- Forfeiture and reissue of shares can help companies manage their capital structure effectively and ensure shareholders fulfill their obligations.
Attention UPSC Students!
To make sure you are not studying endlessly, EduRev has designed UPSC study material, with Structured Courses, Videos, & Test Series. Plus get personalized analysis, doubt solving and improvement plans to achieve a great score in UPSC.
|
Explore Courses for UPSC exam
|
|
Similar UPSC Doubts
Top Courses for UPSCView all
Bhakti ltd.forfeited 100 equity shares of 10 each,₹6 called up on which the shareholder paid application and allotment of ₹5 per share.of these. 80 shares were reissued as fully paid up for 16 per share?
Question Description
Bhakti ltd.forfeited 100 equity shares of 10 each,₹6 called up on which the shareholder paid application and allotment of ₹5 per share.of these. 80 shares were reissued as fully paid up for 16 per share? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Bhakti ltd.forfeited 100 equity shares of 10 each,₹6 called up on which the shareholder paid application and allotment of ₹5 per share.of these. 80 shares were reissued as fully paid up for 16 per share? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Bhakti ltd.forfeited 100 equity shares of 10 each,₹6 called up on which the shareholder paid application and allotment of ₹5 per share.of these. 80 shares were reissued as fully paid up for 16 per share?.
Bhakti ltd.forfeited 100 equity shares of 10 each,₹6 called up on which the shareholder paid application and allotment of ₹5 per share.of these. 80 shares were reissued as fully paid up for 16 per share? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Bhakti ltd.forfeited 100 equity shares of 10 each,₹6 called up on which the shareholder paid application and allotment of ₹5 per share.of these. 80 shares were reissued as fully paid up for 16 per share? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Bhakti ltd.forfeited 100 equity shares of 10 each,₹6 called up on which the shareholder paid application and allotment of ₹5 per share.of these. 80 shares were reissued as fully paid up for 16 per share?.
Solutions for Bhakti ltd.forfeited 100 equity shares of 10 each,₹6 called up on which the shareholder paid application and allotment of ₹5 per share.of these. 80 shares were reissued as fully paid up for 16 per share? in English & in Hindi are available as part of our courses for UPSC.
Download more important topics, notes, lectures and mock test series for UPSC Exam by signing up for free.
Here you can find the meaning of Bhakti ltd.forfeited 100 equity shares of 10 each,₹6 called up on which the shareholder paid application and allotment of ₹5 per share.of these. 80 shares were reissued as fully paid up for 16 per share? defined & explained in the simplest way possible. Besides giving the explanation of
Bhakti ltd.forfeited 100 equity shares of 10 each,₹6 called up on which the shareholder paid application and allotment of ₹5 per share.of these. 80 shares were reissued as fully paid up for 16 per share?, a detailed solution for Bhakti ltd.forfeited 100 equity shares of 10 each,₹6 called up on which the shareholder paid application and allotment of ₹5 per share.of these. 80 shares were reissued as fully paid up for 16 per share? has been provided alongside types of Bhakti ltd.forfeited 100 equity shares of 10 each,₹6 called up on which the shareholder paid application and allotment of ₹5 per share.of these. 80 shares were reissued as fully paid up for 16 per share? theory, EduRev gives you an
ample number of questions to practice Bhakti ltd.forfeited 100 equity shares of 10 each,₹6 called up on which the shareholder paid application and allotment of ₹5 per share.of these. 80 shares were reissued as fully paid up for 16 per share? tests, examples and also practice UPSC tests.
|
|
Explore Courses for UPSC exam
|
|
Suggested Free Tests
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
|
© EduRev
|
Education Revolution
|
Follow Us
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup