Forfeiture and Reissue of Shares

Record journal entries for the forfeiture of shares issued at par for non-payment of allotment or call money.

Record journal entries for the forfeiture of shares originally issued at a premium.

Record journal entries for the reissue of forfeited shares at par, premium, or discount.

Determine the maximum permissible discount on the reissue of forfeited shares.

Calculate the profit on reissue and record its transfer to the Capital Reserve.

Prepare Share Forfeiture Account and Capital Reserve Account.

Solve a comprehensive problem involving oversubscription, pro-rata allotment, forfeiture, and reissue of shares.