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Beta Ltd's capital consists of 100,000 ordinary shares issued at $3.00 and paid to $2.50 per share. On 1 April 2020, a call of $0.50
Beta Ltd's capital consists of 100,000 ordinary shares issued at $3.00 and paid to $2.50 per share. On 1 April 2020, a call of $0.50 was made on the ordinary shares. By 30 April 2020, the call money received amounted to $45,000. No further payments were received, and on 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 reissue 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 receipt of re-issued of shares on 19 June 2020 are: Dr 28,000 Cash/Bank O Forfeited shares liability Share capital Cr 2,000 Cr 30,000 Cash/Bank Dr 30,000 Share capital Cr 30,000 Cash/Bank Dr 30,000 Forfeited shares reserve Cr 30,000 Cash/Bank Dr 28,000 Forfeited shares reserve Cr 2,000 Share capital Cr 30,000
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