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All posts by Asmit Patel

Professional Tax Consultant and Article Writer

Two Types of Shares

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 […]

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: