Accounting for Share Capital: Issue, Allotment & Forfeiture
शेयर पूँजीको लेखाविधि: निष्काशन, बाँडफाँड र जफत
Issue of shares at par, premium, discount; calls-in-arrears, calls-in-advance; over-subscription and pro-rata allotment; forfeiture and re-issue of shares; transfer to Capital Reserve.
Master the full accounting cycle for share capital under the Nepal Company Act 2063, including pro-rata allotment schedules, calls-in-arrears, forfeiture of shares, re-issue, and transfer to Capital Reserve.
Textbook Exercises & Solutions
Showing 1 of 1 Solved QuestionsHigh-Yield Exam Focus Questions (1)
High-probability exam questions curated specifically for Accounting for Share Capital: Issue, Allotment & Forfeiture.
Exam Rationale: Company Act 2063 & NEB Specification Grid Unit 2: Issue, Pro-rata allotment, Forfeiture & Re-issue of Shares.
Quick Revision Takeaways
Common Exam Pitfalls to Avoid
⚠️ Common Error: Debiting Share Capital with full Rs. 100 when only Rs. 80 was called up.
✓ Correct Approach: Always multiply forfeited shares by called-up amount.
Why: Uncalled capital was never credited to Share Capital in the first place.
⚠️ Common Error: Transferring the full Share Forfeiture balance to Capital Reserve upon partial re-issue.
✓ Correct Approach: Transfer capital profit only for the actual number of shares re-issued.
Why: Surplus on un-reissued shares must stay in Share Forfeiture on the Balance Sheet.