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How are forfeited shares handled when they are reissued at a discount?
(a)Ignore the discount.
(b)Reissue at the original issue price.
(c)Debit the discount to the Forfeited Shares Account.
(d)Offset against the Capital Reserve.

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Important Questions on Accounting for Share Capital
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What is meant by ‘Over subscription’ and ‘Under subscription’? How are these dealt with in accounting records?

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How are shares allotted in the case of over-subscription?

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What does 'Calls in Advance' mean?

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Under what conditions can a company issue shares at a discount?

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What is a public company?

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What is meant by the term ‘share’? What types of shares can be issued under the Companies Act, 2013?

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What is the process for recording share issuance transactions when payments are received in installments?

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What is the forfeiture of shares? What is the accounting treatment for the forfeiture of shares?

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What is 'Minimum Subscription'?

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What is a private company?

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What is a company? What are its characteristics?

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What is a listed company?

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What are the uses of securities premium?

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For what purposes can a company use the amount of Securities Premium?

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How is the capital reserve calculated when forfeited shares are reissued?

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What are the main categories in which the share capital of a company is divided?

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Under what circumstances can shares be forfeited?

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How is the forfeiture of shares accounted for when shareholders fail to pay calls?

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What are preference shares? What are the different types of preference shares?

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What does 'Calls in Arrears' mean?

