Respected Everyone,
Can you tell me that why 'SHARE FORFEITURE A/C IS A LIABILITY' ?
Himesh Katuria (Student) (258 Points)
25 February 2013Respected Everyone,
Can you tell me that why 'SHARE FORFEITURE A/C IS A LIABILITY' ?
Himesh Katuria
(Student)
(258 Points)
Replied 25 February 2013
Can You tell me that why share forfeiture a/c is a liability a/c.But it is given in my book that share forfeitured a/c is shown on the liablities side by adding to the paid up share capital ,untill these shares are re-issued.Can you sir,Pls explain me these lines.
Pawan Verma
(Assistant manager finance)
(186 Points)
Replied 25 February 2013
| Originally posted by : Marilyn | ||
 |
Can You tell me that why share forfeiture a/c is a liability a/c.But it is given in my book that share forfeitured a/c is shown on the liablities side by adding to the paid up share capital ,untill these shares are re-issued.Can you sir,Pls explain me these lines. |
 |
In the case of share forfeiture, the company wil be under an obligation to re-issue the share.
Share forefeitured A/c is a liability because it is an amount received by the company (Like a Fund). It is required to be disclosed by adding to the paid up share capital because it is prescribed by the companies act.
*RENU SINGH *
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(21627 Points)
Replied 26 February 2013
| Originally posted by : Pawan Verma | ||
|
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Originally posted by : Marilyn Can You tell me that why share forfeiture a/c is a liability a/c.But it is given in my book that share forfeitured a/c is shown on the liablities side by adding to the paid up share capital ,untill these shares are re-issued.Can you sir,Pls explain me these lines. In the case of share forfeiture, the company wil be under an obligation to re-issue the share. Share forefeitured A/c is a liability because it is an amount received by the company (Like a Fund). It is required to be disclosed by adding to the paid up share capital because it is prescribed by the companies act. |
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