Two Types of Shares: If a company issues both types of shares, Preference and Equity, the accounts will be prefixed by the terms ‘Preference Share’ or ‘Equity Share’ as the […]
All posts by Asmit Patel
Professional Tax Consultant and Article Writer
Partial Reissue :
Partial Reissue : When all forfeited shares are not reissued then only profit made on such reissued shares is transferred to capital reserve. The amount relating to that part of […]
Reissue of shares issued at Premium:
Reissue of shares issued at Premium: When shares previously issued at a premium on which premium has been already received fully, share premium need not be recorded again on reissue […]
Capital Reserve
Capital Reserve : The balance if any in the forfeited share account is a capital profit and will be transferred to ‘Capital reserve account’. The entry for transferring the balance […]
Reissue of shares issued at Discount
Reissue of shares issued at Discount : When shares previously issued at discount are reissued after forfeiture the discount should be brought into account. Illustration : Madhina Company Ltd. issued […]
Reissue of forfeited shares
Reissue of forfeited shares The Directors of a company have the right to reissue the shares that were forfeited by them already as and when they find it suitable and […]
Calls-in-Advance
Calls-in-Advance When an applicant sends more money than what is called by the company, the excess money is called Calls-in-Advance. The accounting entry passed to record the same is: Bank […]
Forfeiture of shares – issued at Par
Forfeiture of shares – issued at Par The effect of forfeiture is to cancel the allotment given to the shareholder. So, all entries passed earlier must be reversed now. The […]
Forfeiture of Shares
Forfeiture of Shares : Sometimes a shareholder may fail to pay any of the instalments i.e allotment or call money. In such a situation after giving due notice and following […]
Forfeited shares account
Forfeited shares account: The discount on reissue (paid-up value – reissue price) of forfeited shares is debited to ‘Forfeited shares account’. The accounting entry passed to record the same is: