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A Ltd.issued 10,000 Equity shares of ₹100 each at a premium of ₹20 per share payable as ₹30 per share on application, ₹50 per share on allotment including premium and ₹40 per share on first and final call.
All these shares were subscribed, amount due on shares was received except from Asha , holding 100 shares who did not pay allotment and call money and Neeru holding 200 shares did not pay the first and final call money. All these 300 shares were forfeited. Out of the forfeited share 150shares(including share of Asha)were later re-issued to raja @₹80 per share as fully paid.
pass Journal Entries in the books of the company to record the forfeited and re - issue.?
All these shares were subscribed, amount due on shares was received except from Asha , holding 100 shares who did not pay allotment and call money and Neeru holding 200 shares did not pay the first and final call money. All these 300 shares were forfeited. Out of the forfeited share 150shares(including share of Asha)were later re-issued to raja @₹80 per share as fully paid.
pass Journal Entries in the books of the company to record the forfeited and re - issue.?
Most Upvoted Answer
A Ltd.issued 10,000 Equity shares of ₹100 each at a premium of ₹20 per...
Forfeiture of Shares:
- Journal entry for forfeiture of shares:
- Share Capital A/c Dr (Face value)
- Securities Premium A/c Dr (Premium received)
- Share Allotment A/c Dr (Allotment money)
- To Share Capital Forfeited A/c (Amount due on forfeited shares)
- To Share Allotment A/c (Allotment money)
- To Share First and Final Call A/c (Call money)
- Journal entry for reissue of forfeited shares:
- Bank A/c Dr (Amount received from reissue)
- Share Capital Forfeited A/c Dr (Face value)
- Securities Premium A/c Dr (Premium received)
- To Share Capital A/c (Face value)
- To Securities Premium A/c (Premium on reissue)
- Explanation:
- The forfeiture of shares involves cancelling the shares from the shareholder who fails to pay the allotment or call money. In this case, Asha and Neeru failed to pay the required amounts, leading to the forfeiture of their shares.
- The reissue of forfeited shares involves selling the forfeited shares to a new shareholder. In this case, Raja purchased 150 forfeited shares, including Asha's share, at a discounted price of ₹80 per share. The company receives the reissue amount along with any premium on reissue.
- Impact:
- Forfeiture helps in recovering the unpaid amount from defaulting shareholders.
- Reissue allows the company to raise funds by selling forfeited shares to new investors at a discounted price.
- Journal entry for forfeiture of shares:
- Share Capital A/c Dr (Face value)
- Securities Premium A/c Dr (Premium received)
- Share Allotment A/c Dr (Allotment money)
- To Share Capital Forfeited A/c (Amount due on forfeited shares)
- To Share Allotment A/c (Allotment money)
- To Share First and Final Call A/c (Call money)
- Journal entry for reissue of forfeited shares:
- Bank A/c Dr (Amount received from reissue)
- Share Capital Forfeited A/c Dr (Face value)
- Securities Premium A/c Dr (Premium received)
- To Share Capital A/c (Face value)
- To Securities Premium A/c (Premium on reissue)
- Explanation:
- The forfeiture of shares involves cancelling the shares from the shareholder who fails to pay the allotment or call money. In this case, Asha and Neeru failed to pay the required amounts, leading to the forfeiture of their shares.
- The reissue of forfeited shares involves selling the forfeited shares to a new shareholder. In this case, Raja purchased 150 forfeited shares, including Asha's share, at a discounted price of ₹80 per share. The company receives the reissue amount along with any premium on reissue.
- Impact:
- Forfeiture helps in recovering the unpaid amount from defaulting shareholders.
- Reissue allows the company to raise funds by selling forfeited shares to new investors at a discounted price.
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A Ltd.issued 10,000 Equity shares of ₹100 each at a premium of ₹20 per share payable as ₹30 per share on application, ₹50 per share on allotment including premium and ₹40 per share on first and final call.All these shares were subscribed, amount due on shares was received except from Asha , holding 100 shares who did not pay allotment and call money and Neeru holding 200 shares did not pay the first and final call money. All these 300 shares were forfeited. Out of the forfeited share 150shares(including share of Asha)were later re-issued to raja @₹80 per share as fully paid.pass Journal Entries in the books of the company to record the forfeited and re - issue.?
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A Ltd.issued 10,000 Equity shares of ₹100 each at a premium of ₹20 per share payable as ₹30 per share on application, ₹50 per share on allotment including premium and ₹40 per share on first and final call.All these shares were subscribed, amount due on shares was received except from Asha , holding 100 shares who did not pay allotment and call money and Neeru holding 200 shares did not pay the first and final call money. All these 300 shares were forfeited. Out of the forfeited share 150shares(including share of Asha)were later re-issued to raja @₹80 per share as fully paid.pass Journal Entries in the books of the company to record the forfeited and re - issue.? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about A Ltd.issued 10,000 Equity shares of ₹100 each at a premium of ₹20 per share payable as ₹30 per share on application, ₹50 per share on allotment including premium and ₹40 per share on first and final call.All these shares were subscribed, amount due on shares was received except from Asha , holding 100 shares who did not pay allotment and call money and Neeru holding 200 shares did not pay the first and final call money. All these 300 shares were forfeited. Out of the forfeited share 150shares(including share of Asha)were later re-issued to raja @₹80 per share as fully paid.pass Journal Entries in the books of the company to record the forfeited and re - issue.? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A Ltd.issued 10,000 Equity shares of ₹100 each at a premium of ₹20 per share payable as ₹30 per share on application, ₹50 per share on allotment including premium and ₹40 per share on first and final call.All these shares were subscribed, amount due on shares was received except from Asha , holding 100 shares who did not pay allotment and call money and Neeru holding 200 shares did not pay the first and final call money. All these 300 shares were forfeited. Out of the forfeited share 150shares(including share of Asha)were later re-issued to raja @₹80 per share as fully paid.pass Journal Entries in the books of the company to record the forfeited and re - issue.?.
A Ltd.issued 10,000 Equity shares of ₹100 each at a premium of ₹20 per share payable as ₹30 per share on application, ₹50 per share on allotment including premium and ₹40 per share on first and final call.All these shares were subscribed, amount due on shares was received except from Asha , holding 100 shares who did not pay allotment and call money and Neeru holding 200 shares did not pay the first and final call money. All these 300 shares were forfeited. Out of the forfeited share 150shares(including share of Asha)were later re-issued to raja @₹80 per share as fully paid.pass Journal Entries in the books of the company to record the forfeited and re - issue.? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about A Ltd.issued 10,000 Equity shares of ₹100 each at a premium of ₹20 per share payable as ₹30 per share on application, ₹50 per share on allotment including premium and ₹40 per share on first and final call.All these shares were subscribed, amount due on shares was received except from Asha , holding 100 shares who did not pay allotment and call money and Neeru holding 200 shares did not pay the first and final call money. All these 300 shares were forfeited. Out of the forfeited share 150shares(including share of Asha)were later re-issued to raja @₹80 per share as fully paid.pass Journal Entries in the books of the company to record the forfeited and re - issue.? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A Ltd.issued 10,000 Equity shares of ₹100 each at a premium of ₹20 per share payable as ₹30 per share on application, ₹50 per share on allotment including premium and ₹40 per share on first and final call.All these shares were subscribed, amount due on shares was received except from Asha , holding 100 shares who did not pay allotment and call money and Neeru holding 200 shares did not pay the first and final call money. All these 300 shares were forfeited. Out of the forfeited share 150shares(including share of Asha)were later re-issued to raja @₹80 per share as fully paid.pass Journal Entries in the books of the company to record the forfeited and re - issue.?.
Solutions for A Ltd.issued 10,000 Equity shares of ₹100 each at a premium of ₹20 per share payable as ₹30 per share on application, ₹50 per share on allotment including premium and ₹40 per share on first and final call.All these shares were subscribed, amount due on shares was received except from Asha , holding 100 shares who did not pay allotment and call money and Neeru holding 200 shares did not pay the first and final call money. All these 300 shares were forfeited. Out of the forfeited share 150shares(including share of Asha)were later re-issued to raja @₹80 per share as fully paid.pass Journal Entries in the books of the company to record the forfeited and re - issue.? in English & in Hindi are available as part of our courses for UPSC.
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A Ltd.issued 10,000 Equity shares of ₹100 each at a premium of ₹20 per share payable as ₹30 per share on application, ₹50 per share on allotment including premium and ₹40 per share on first and final call.All these shares were subscribed, amount due on shares was received except from Asha , holding 100 shares who did not pay allotment and call money and Neeru holding 200 shares did not pay the first and final call money. All these 300 shares were forfeited. Out of the forfeited share 150shares(including share of Asha)were later re-issued to raja @₹80 per share as fully paid.pass Journal Entries in the books of the company to record the forfeited and re - issue.?, a detailed solution for A Ltd.issued 10,000 Equity shares of ₹100 each at a premium of ₹20 per share payable as ₹30 per share on application, ₹50 per share on allotment including premium and ₹40 per share on first and final call.All these shares were subscribed, amount due on shares was received except from Asha , holding 100 shares who did not pay allotment and call money and Neeru holding 200 shares did not pay the first and final call money. All these 300 shares were forfeited. Out of the forfeited share 150shares(including share of Asha)were later re-issued to raja @₹80 per share as fully paid.pass Journal Entries in the books of the company to record the forfeited and re - issue.? has been provided alongside types of A Ltd.issued 10,000 Equity shares of ₹100 each at a premium of ₹20 per share payable as ₹30 per share on application, ₹50 per share on allotment including premium and ₹40 per share on first and final call.All these shares were subscribed, amount due on shares was received except from Asha , holding 100 shares who did not pay allotment and call money and Neeru holding 200 shares did not pay the first and final call money. All these 300 shares were forfeited. Out of the forfeited share 150shares(including share of Asha)were later re-issued to raja @₹80 per share as fully paid.pass Journal Entries in the books of the company to record the forfeited and re - issue.? theory, EduRev gives you an
ample number of questions to practice A Ltd.issued 10,000 Equity shares of ₹100 each at a premium of ₹20 per share payable as ₹30 per share on application, ₹50 per share on allotment including premium and ₹40 per share on first and final call.All these shares were subscribed, amount due on shares was received except from Asha , holding 100 shares who did not pay allotment and call money and Neeru holding 200 shares did not pay the first and final call money. All these 300 shares were forfeited. Out of the forfeited share 150shares(including share of Asha)were later re-issued to raja @₹80 per share as fully paid.pass Journal Entries in the books of the company to record the forfeited and re - issue.? tests, examples and also practice UPSC tests.
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