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Question
Complete the sentence.
Company can forfeit only ______ paid shares.
Solution
Company can forfeit only Partly paid shares.
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RELATED QUESTIONS
The balance of Share Forfeiture A/c is transferred to _________ account after re-issue of these share.
When shares are forfeited the Share Capital Account is _________.
State whether you agree or disagree with following statement:
Directors can re-issue forfeited shares.
Answer in one sentence only.
What is Forfeiture of Shares?
One shareholder holding 500 equity shares paid share application money @ ₹ 3 Allotment money @ ₹ 4 per share and failed to pay final call of ₹ 3 per share, his shares were forfeited. Calculate the amount of share forfeiture.
Pass Journal entries for the forfeiture and re-issue of shares in the following cases.
A) Asha Ltd. forfeited 100 equity shares of ₹ 20 each fully called up for non-payment of first call of ₹ 3 per share and final call of ₹ 5 per share. 80 shares of these were reissued at ₹ 15 per share fully paid
B) 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 re-issued as fully paid-up for ₹ 6 per share.
C) Konark Ltd. forfeited 50 shares of ₹ 10 each, ₹ 8 called-up. The shareholder failed to pay first call of ₹ 3 per share. Later on 30 shares of these were re-issued at ₹ 7 per share.
Select the correct answer from the options given below and rewrite the statement.
Company can ______ shares on non-payment of calls.
Write a word or a term or a phrase which can substitute the following statement.
Penal action taken by company on non-payment of calls.
State whether the following statement is true or false.
Only fully paidup shares can be forfeited.
Answer in one sentence.
When can a company forfeit shares?
Study the following case/situation and express your opinion.
X owns 100 shares while Y owns 500 shares of Red Tubes Ltd. The company has asked all its shareholders to pay the balance unpaid amount of ₹ 20. X pays the full money demanded by the company. Y, who is in a bad financial position is unable to pay any money.
- Can the company forfeit the shares of Y?
- Can the company forfeit the shares of X?
- Can X transfer his shares?
Answer in brief.
What are the effects of forfeiture of shares?
Justify the following statement.
Board of Directors have the authority to forfeit shares.
Vraj Ltd. issued 40,000 equity shares of ₹ 20 each payable as follows:
On Application: ₹ 4
On Allotment: ₹ 6
On First Call: ₹ 6
On Second Call: ₹ 4
The company received applications for 50,000 equity shares. Allotment of shares was made on pro-rata basis. Share allotment and calls were made and as also received except Ravi holding 100 shares failed to pay both the calls. His shares were forfeited after second call.
Record the above transactions in the books of Vraj Ltd.
Find the odd one.
