Shaalaa.com | Forfeiture of shares 1
Give one word / Term / phrase for the following statement :
The account to which excess amount on share forfeited a/c is transferred.
Select the most appropriate answer from the alternatives given below and rewrite the sentence :
When shares are forfeited, share capital account is ______________.
(Forfeiture of shares issued at par)
Vijay Ltd. issued Rs 40,000 Equity shares of Rs 10 each payable as follows.
|On Application :||Rs 2||On Allotment :||Rs 3|
|On First Call :||Rs 3||On Second Call :||Rs.2|
The company received applications for Rs 50,000 equity shares. Allotment for shares was made on pro rata basis. Share allotment and calls were made and as also received except Raja holding Rs 1,000 shares failed to pay both the calls. His shares were forfeited after second call.
Record the above transactions in books of Vijay Ltd.
Note: Excess money received on share application 10,000 × Rs 2 = 20,000 will be diverted to share allotment A/c.
(Forfeiture of shares issued at premium)
The Century Ltd. issued 8,000 shares of Rs 100 at a premium of 10% payable as under-
|On Application||Rs 25||On Allotment||Rs 40 (including premium)|
|On First Call||Rs 20||On Second Call||Rs 25|
Company called up allotment and both the calls which were duly received except Ramesh to whom 500 shares were allotted failed to pay allotment and calls. Prepare Journal of Century Ltd.
State, whether the following statements is True or False.
A public company forfeits share on non-payment of final call only.