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On 1 April 2020, a call of $0.50 was made on the ordinary shares. By 20 April 2020, the call money received amounted to 545,000.
On 1 April 2020, a call of $0.50 was made on the ordinary shares. By 20 April 2020, the call money received amounted to 545,000. No further payments were received, and on 31 May 20 the shares on which calls were outstanding were forfeited. On 15 June 2020, the forfeited shares were reissued as paid to $2.00 for a payment of $2.80 per share. Amount from the reis was received on 19 June 2020. Costs of reissue amounted to $3,500. The company's constitution provided for any surplus on resale, after satisfaction of unpaid calls, accrued interest 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: Cash/Bank Dr 28,000 O Forfeited shares reserve G 2.000 Share capital C 30,000 Dr 30,000 O Cash/Bank Forfeited shares reserve Gr 30,000 Cash/Bank Dr 30.000 Share capital Cr 30,000 CashBank DI 28,000 C 2.000 Forfeited shares liability Share capital 30.00 30.000 ENG 12:01
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