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Important query ..!!!!

Himesh Katuria (Student) (258 Points)

25 February 2013

Respected Everyone,

Can you tell me that why 'SHARE FORFEITURE A/C IS A LIABILITY' ?

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5 Replies

Vishal (CA) (107 Points)
Replied 25 February 2013

Its not a liablity for the company

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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.

CA HIMANSHU (ARTICLE) (317 Points)
Replied 26 February 2013

yes it is

*RENU SINGH * (✩ §m!ℓ!ñġ €ม€§ fℓม!ñġ ђ♪gђ✩ ) (21627 Points)
Replied 26 February 2013

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.