Advertisements
Advertisements
प्रश्न
Study the following case/situation and express your opinion.
Red Tubes Ltd. has made a demand on its shareholders to pay the balance unpaid amount of ₹ 20/- per share (having a face value of ₹ 100) held by them. The company has sent letters asking the shareholders to pay the money to its Bankers within the specified time.
- Are the shareholders liable to pay ₹ 20 for the shares held by them?
- Name the letter sent by the company to its shareholders asking them to pay ₹ 20/-
- What happens if a shareholder fails to pay the money within the specified time?
Advertisements
उत्तर
- Yes. The shareholders are liable to pay ₹ 20 for the shares held by them. This is because it is the responsibility of every shareholder to pay the call money as demanded by the company.
- The company has to send the call letter to shareholders for the payment of call money. This letter is sent by ordinary post.
- If a shareholder fails to pay the money within the specified time, then the company sends a warning letter and after that, the company can forfeit (cancel) the shares of the shareholders.
APPEARS IN
संबंधित प्रश्न
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 true or false with reason.
Directors can forfeit the shares for any reason.
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?
Only fully paidup shares can be forfeited.
Correct the underlined word and rewrite the following sentence.
Only fully paid up shares can be forfeited.
Explain the following term/concept.
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.
The Subscribed Capital of Parag Limited is 30,000 equity shares of ₹ 100 each and 50,000 preference shares of ₹ 100 each. On both of these shares ₹ 80 per share were called-up.
The Directors forfeited 500 equity shares held by Ashish who failed to pay First and Second Call each of ₹ 20 per share. They also forfeited 500 preference shares of Ashok who failed to pay ₹ 20 per share on Allotment, ₹ 20 per share on First call and ₹ 20 per share on Second call.
The Director re-issued these forfeited shares of Ashish at ₹ 60 per share, ₹ 80 paid up and those of Ashok at ₹ 72 per share ₹ 80 paid up. All re-issued shares were taken up by Anagha.
Pass Journal entries to record the forfeiture and re-issue of shares in the books of Parag Ltd.
Only fully paid-up shares can be forfeited.
Find the odd one.
