Want to know some logic
This query is : Resolved
06 December 2009
Respected sirs and ma'ms,
I am a student of accounts from Ahmedabad,Gujarat.I just learned about reissue of forfeited shares.In this topic I was taught that when we reissue forfeited shares at a discount,we have to debit forfieted shares account with bank account.So I want to know the logic behind debiting of forfeited shares account inspite of share discount account!!!!!Please help me to know this logic.Thank you for giving me time.
I am a student of accounts from Ahmedabad,Gujarat.I just learned about reissue of forfeited shares.In this topic I was taught that when we reissue forfeited shares at a discount,we have to debit forfieted shares account with bank account.So I want to know the logic behind debiting of forfeited shares account inspite of share discount account!!!!!Please help me to know this logic.Thank you for giving me time.
07 December 2009
Share forfeit a/c means whatever amount you have received so far; has been credited to share forfeited a/c.
When you reissue these shares then it means you are using Share Forfeit a/c. So whatever expenditure i.e. discount is there; that is your loss while reissuing forfeited shares.
When all the underlying income has been credited to the Share forfeited a/c then expenses should also be debited to this account.
Hope the point is clear.
CAREER CONSULTANT
SURAT
When you reissue these shares then it means you are using Share Forfeit a/c. So whatever expenditure i.e. discount is there; that is your loss while reissuing forfeited shares.
When all the underlying income has been credited to the Share forfeited a/c then expenses should also be debited to this account.
Hope the point is clear.
CAREER CONSULTANT
SURAT
07 December 2009
thnk u sir for ur reply!!!!!!!!
08 December 2009
because we are not providing discount on share so we are not debiting discount on share a/c.further we have to adjust credit balance say 1000 of forfeit account so when we received 800 agnst all share than balance will stand in credit so we reverse rest of 200 as discount and credit rest of 800 to share capital account.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- About TDS & Income Tax
- Section 194JA & JB Income which ITR Form to use
- PPF interest-As Exempt Income disclosure
- Scrutiny and reopening of past returns
- Under construction property in ITR
- Pass word to open justification report for Q1 for FY 2026-27
- Upload Level ValidationITR3Category of Defect B/D
- Booth for sales promotion
- Building tax payment deduction in rental Income
- New Garden in Place of Old Garden
- GST ON TRAVELLING BILLS
- F & O PROFIT REPORTING FOR AY 2026-27
- PF Taxable Income
- Clarification on Tax Audit Applicability and Reporting of F&O Transactions in ITR-3
- Interest credited in FY2025-2026 & TDS therein by EPFO does not reflect in AIS or Form 26AS
- 44ad eligble money lending interest
- Delisted shares sold in off market/ Rebate u/s87A
- In Exports Sales HSN details where to fill
- Opting out" of regime provided under subsection (1A) of Section 115BAC but Form 10IEA is not filed.
- Difference in tax comparison report
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
