What is Reissue of Forfeited Shares? Video Lecture - Commerce

a reissue of forfeited shares shares
which were forfeited shares which were
canceled can be reissued
so once shares are forfeited Mohan's
membership is canceled Mohan is no
longer a shareholder but these same
shares may be issued - so hon X Y or Z
such reissue may be at par may be at
premium or may be at a discount so
basically the shares which were
forfeited are being reissued they may be
reissued at par they may be reissued a
premium or they may be issued at a
discount however if the reissue is at a
discount if forfeited shares are being
reissued at a discount the maximum
amount of discovered the maximum amount
of discount is the amount which was for
free
that means the amount which was received
the amount which was received at the
time of forfeiture a mod which was
received from the previous change holder
now let us understand that the amount
which is forfeited the amount which lies
in the shares forfeited account what is
the amount which is there in the shades
forfeited account it is the or mod which
has been received this amount is a
profit it is a capital profit why is it
a profit because shares have been
cancelled there is no shape but amount
has been received and this amount is
just a profit which has been retained in
Ash's forfeited account tell the share
is
reissued share score feat an account
like this n before is added to the share
capital and shown in the balance sheet
when shells are issued at a discount the
discount on issue on ratio rata the
discount on reissue this is a loss this
is a capital loss that is why there is a
restriction on the discount on reissue
the discount on reissue cannot exceed
the amount which was forfeited so if we
have collected 3 rupees per share from
the previous shareholder and the
remaining seven rupees were in 10 years
when this share is being reissued the
discount cannot be more than three the
discount cannot be more than three so
the shares forfeited is the profit the
discount is the loss if profit minus
this loss there is any net gain such net
gain is transferred to the capital
reserve account is transferred to the
capital reserve account so when a share
is forfeited there is a balance in the
chase for heated account which
represents a net of profit or a gain on
for feature because it represents the
amount which has been received on shares
which are now cancelled
this amount is not refunded to the
shareholder when these shares are
reissued the amount is no longer
retained in the shares forfeited account
so if a share which is forfeited is
reissued any balance in the shares
forfeited account should be transferred
to a capital reserve account
the net game now well shares are
reissued at a discount there is a loss
there is a loss the discount represents
the loss and such loss cannot exceed the
balance in the shades forfeited account
cannot exceed the profit which we made
on for feature the net gain this shares
forfeited account the game - the loss of
reissue the net gain is transferred to
the capital reserve account these are in
broad the provisions of the companies
that with respect to reissue of
forfeited shares so real issue may be at
par Premium or discount however the
amount of discount cannot exceed the
amount forfeited profit after reissue is
transferred to the capital reserve so
once shares for Peter are reissued there
should be no further balance in the
shares forfeited account such balance
should be transferred to capital reserve
occur and the balance in the share for
PTIN account is added to the share
capital what is the balance in the
shares for fetal account the balance at
any point in time in the shades for fee
to the call represents the amount
received on the shares forfeited but not
yet reissued the amount received on
shares forfeited and not yet reshoot