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
- Difference between Date of Payment and Date of Deduction?
- Tax Audit Applicability – Newly Formed Partnership Firm with Profit Below 6%/8%
- Unregistered suppliers utility
- ITDS U/S.194T of Firm
- TDS CREDIT MISMATCHING
- Buy back of shares u/s69
- Need Professional Opinion - AY 2012-13 Old Demand & AY 2026-27 Refund Adjustment
- ITR 4 and Bank transactions
- URGENT-Eligible leaves being shown as 24 days for 3 years Articleship instead of 156 days in 108
- FCRA 6 E- Intimation
- RCM @ 5% on Hamali charges, Transport Charges, Unloading charges we take ITC or not
- CALCULATION OF DEFFERED TAX - OP BL IS DTL & CURRET IT DTA
- LLP audit under companies act
- Experienced CA recommendation from Kolkata for FNO return filing
- Interest Reporting in Form 168
- Sales of goods of amount Rs77 lakhs to a party
- Tax Demand of ₹4,650 for AY 2026-27
- Concept of Vendor and customner reconciliation
- Mistake in e-invoice identified after 24 hours
- EXPORT PAYMENT
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
