2.2.3.3 - Forfeiture and Reissue of Shares
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Practice Questions
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What does forfeiture of shares mean?
💡 Hint: Think about what happens when bills aren't paid.
Can forfeited shares be reissued?
💡 Hint: Consider the company's opportunity to regain capital.
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Interactive Quizzes
Quick quizzes to reinforce your learning
What happens during the forfeiture of shares?
💡 Hint: Think about the impact of unpaid dues on company funds.
Is a company allowed to reissue forfeited shares at any price?
💡 Hint: Consider the legal limits on pricing after forfeiture.
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Challenge Problems
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A company with a total of ₹2,000 in unpaid calls on 500 shares decides to forfeit them. Identify steps and potential journal entries involved.
💡 Hint: How do you track the loss of capital due to forfeiture?
The company reissues half of its forfeited shares at a ₹10 discount and the total unpaid calls were ₹2,000. Draft the journal entries.
💡 Hint: What happens to the accounts when shares are reissued?
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