Important query ..!!!!

Its not a liablity for the company 

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.

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.

yes it is

Originally posted by : Pawan Verma
	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.

Agree