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Why are the shares forfeited? - Accountancy

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प्रश्न

Why are the shares forfeited?

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उत्तर

When a shareholder defaults in making payment of allotment/call money, the shares may be forfeited. On forfeiture, the share allotment is cancelled and to that extent, paid-up share capital reduced.

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अध्याय 7: Company accounts - Very short answer questions [पृष्ठ २५७]

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सामाचीर कलवी Accountancy [English] Class 12 TN Board
अध्याय 7 Company accounts
Very short answer questions | Q II 5. | पृष्ठ २५७
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