UrbanPro
true

Take Class 12 Tuition from the Best Tutors

  • Affordable fees
  • 1-1 or Group class
  • Flexible Timings
  • Verified Tutors

Forfeiture Of Shares (II PUC And CBSE Accountancy)

Madhura Sagar G.
09/04/2020 0 0

The term Forfeiture of Shares refers to Cancellation of Shares by the Company. The company decides to cancel/forfeit the shares of a member/shareholder as, the shareholder must not have responded to the payment calls of the company. The company, however, has to give a fourteen days notice to the shareholder before going for the Forfeiture of shares.
It should be noted that the company does not refund the amount already paid by the shareholder in the earlier stages (say for example application money) in case of the Forfeiture of the shares held by that shareholder.
The following journal entry is passed during the Forfeiture:
Share Capital A/c......Dr.
     To Forfeited Shares A/c.
     To Share Allotment A/c.
     To Share Call A/c.
Here, the amount already paid by the shareholder say in Application Stage is also forfeited and goes to 'Forfeited Shares A/c'. The above example assumes that the concerned shareholder has not paid the allotment money and calls money.

0 Dislike
Follow 4

Please Enter a comment

Submit

Other Lessons for You

Google Street View Cars Are Mapping Methane Leaks
Natural gas pipeline leaks that pose a safety hazard are quickly addressed. But what about leaks too small to pose a threat? These mall leaks are often overlooked and they collectively release tons of...

HRA: House Rent Allowance
What is HRA? HRA or House Rent Allowance is a component of salary provided by employer to his employee. If you receive HRA as part of your salary and you live in a rented accommodation, then you can claim...
F

Introduction To Accounting: Part 4: Accounting Cycle
Remember when we started learning English? We started off by learning Alphabets, then we joined Alphabets to form Words, then we joined Words to form Sentences, then we joined Sentences to form Paragraphs,...

Largest value of min (2 + x^2, 6 -3x) When x > 0
Question: Largest value of min (2 + x^2, 6 -3x) when x > 0. Solution: One is increasing function and other is decreasing. so their intersection is given by: 2+x^2 = 6-3x. x>0 so can't be -4....

Why GST May Boost Gold Smuggling, Illegal Jewellery Sales?
Mumbai: A hike in taxes on gold under GST (Goods and Services Tax) could stoke under-the-counter buying and drive up appetite for precious metal smuggled into the country, where millions of people store...
F
X

Looking for Class 12 Tuition Classes?

The best tutors for Class 12 Tuition Classes are on UrbanPro

  • Select the best Tutor
  • Book & Attend a Free Demo
  • Pay and start Learning

Take Class 12 Tuition with the Best Tutors

The best Tutors for Class 12 Tuition Classes are on UrbanPro

This website uses cookies

We use cookies to improve user experience. Choose what cookies you allow us to use. You can read more about our Cookie Policy in our Privacy Policy

Accept All
Decline All

UrbanPro.com is India's largest network of most trusted tutors and institutes. Over 55 lakh students rely on UrbanPro.com, to fulfill their learning requirements across 1,000+ categories. Using UrbanPro.com, parents, and students can compare multiple Tutors and Institutes and choose the one that best suits their requirements. More than 7.5 lakh verified Tutors and Institutes are helping millions of students every day and growing their tutoring business on UrbanPro.com. Whether you are looking for a tutor to learn mathematics, a German language trainer to brush up your German language skills or an institute to upgrade your IT skills, we have got the best selection of Tutors and Training Institutes for you. Read more