When a company requests a further payment from shareholders of the unpaid amounts on their shares, it: makes a call on the shares. makes a further allotment of those shares. converts the shares into debentures. forfeits the shares.

What is meant by Forfeiture of shares ?

What is the difference between shares and debentures

An entity purchases a building and the seller accepts payment partly in equity shares and partly in debentures of the entity. This transaction should be treated in the cash flow statement as follows:a.The purchase of the building should be investing cash outflow and the issuance of shares and the debentures financing cash outflows.b.The purchase of the building should be investing cash outflow and the issuance of debentures financing cash outflows while the issuance of shares investing cash outflow.c.Ignore the transaction totally since it is a noncash transaction. No mention is required in either the cash flow statement or anywhere else in the financial statements.d.This does not belong in a cash flow statement and should be disclosed only in the footnotes to the financial statements.Clear my choice

S.102 (1) of the Companies Act states that if any business of a company iscarried out with intent to defraud creditors of the Company or any person whoknowingly participates in carrying on the business in the manner commits anoffence. Discuss the concept entailed in this provision and under what instancesit is applicable. (17.5 Marks)*END*

Co. Ltd. issucd 15,000 shares of 100 each at a discount of 20 pershare payable as follows20 on Application50 on Allotment (including discount)30 on Call.Application were received for 18,000 shares, excess application money wererefundedA shareholder holding 1,000 shares did not pay call money. His shares wereforfeited after call. Out of these 600 shares were re-issued to Mr. Roy