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Zorluk: ZorForfeiture and Re-issue of Shares

Apex Nigeria Plc issued ordinary shares of ₦1.00 each at a premium of ₦0.20 per share, payable as follows:
- On Application: ₦0.30
- On Allotment: ₦0.40 (including the premium of ₦0.20)
- On First Call: ₦0.30
- On Final Call: ₦0.20

A shareholder holding 1,000 shares paid the application and allotment monies but defaulted on both the first call and final call. The company forfeited these 1,000 shares and subsequently re-issued them to another investor as fully paid up at ₦0.70 per share. What is the net amount to be transferred to the Capital Reserve Account?

  1. ₦200Cevap
  2. B
    ₦400
  3. C
    ₦500
  4. D
    ₦300

Cevap

The amount to be transferred to the Capital Reserve Account is ₦200.
The correct calculation isolates the capital component paid on the forfeited shares (excluding the share premium), which totals ₦0.50 per share or ₦500 for 1,000 shares. Upon reissue at ₦0.70 per share (a discount of ₦0.30 per share below the ₦1.00 nominal value), ₦300 of the forfeited balance is utilized to cover the discount. The net gain remaining in the Forfeited Shares Account is ₦500 - ₦300 = ₦200, which is transferred to the Capital Reserve Account.

Adım Adım Çözüm

1
Determine the capital portion paid per share prior to forfeiture
Capital paid per share = ₦0.30 (Application) + (₦0.40 - ₦0.20 Premium) (Allotment) = ₦0.50 per share
Share premium already collected must be credited to the Share Premium Account and excluded from the Forfeited Shares Account.
2
Calculate the total amount credited to the Forfeited Shares Account
Total Forfeited Amount = 1,000 shares × ₦0.50 = ₦500
The company retains the capital portion already paid up by the defaulting shareholder.
3
Calculate the discount allowed on reissue
Discount per share = ₦1.00 (Nominal value) - ₦0.70 (Reissue price) = ₦0.30 per share. Total Discount = 1,000 shares × ₦0.30 = ₦300
When forfeited shares are re-issued at a discount, the loss is debited to the Forfeited Shares Account.
4
Calculate the net balance transferred to Capital Reserve
Capital Reserve Transfer = ₦500 (Forfeited Amount) - ₦300 (Reissue Discount) = ₦200
The remaining surplus in the Forfeited Shares Account after covering the reissue discount represents a capital gain and must be transferred to the Capital Reserve Account.

Anahtar Kavram

Accounting for Forfeiture and Re-issue of Shares at a Discount
Tahmini Süre:2m 0s
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Konular

Forfeiture and Re-issue of Shares

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