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Beta Ltd's capital consists of 100,000 ordinary shares issued at $3.00 and paid to $7.50 per share. On 1 April 2020, a call of $o.so
Beta Ltd's capital consists of 100,000 ordinary shares issued at $3.00 and paid to $7.50 per share. On 1 April 2020, a call of $o.so was made on the ordinary shares. Dy 30 April 2020, the call money received amounted to $45,000. No further payments were received, and c 31 May 2020, the shares on which calls were outstanding were forfeited. On 15 June 2020, the forfeited shares were reissued as paid to $3.00 for a payment of $2.80 per share. Amount from the resse was received on 19 June 2020. Costs of reissue amounted to $3,500. The company's constitution provided for any surplus en resale, after satisfaction of unpaid calls, accrued interest and costs, to be returned to the shareholders whose shares were forfeited. The entries to record the forfeiture of shares on 31 May 2020 ares Share capital Dr 30,000 O Call - Ordinary shares ar 5,000 Forfeited shares liability Cr 25,000 Dr 30,000 Share capital Call - Ordinary shares Forfeited.shares reserve G 25,000 Cr 5,000 Dr 30,000 Share capital Call - Ordinary shares Forfeited shares reserve 5,000 CH CA 25,000 5,000 Share capital Dr 30,000 O Call - Ordinary shares Cr 5,000 Forfeited shares reserve Cr 25,000 Forfeited shares liability Dr O 5,000 Share capital Cr 5,000
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