Forfeit example sentences

Once all the forfeited shares have been reissued, any credit balance on forfeited shares' account is transferred to Capital Reserve representing profit on forfeiture of shares.In the event of all forfeited share not being reissued, the credit amount on forfeited shares' account relating to shares yet to be reissued is carried forward and the remaining balance on the account only is credited to capital reserve account.Generally speaking, accounting treatment on forfeiture is to reverse the entries passed till the stage of forfeiture, the amount already received on the shares being credited to Forfeited Shares Account.Therefore, discount allowed on the reissue of forfeited shares is debited to forfeited shares' account.In case, however, if the premium amount has not been received, either wholly or partially, in respect of the shares forfeited, the Share Premium Account will also be debited with the amount of premium not received along-with the Share Capital Account at the time forfeiture.One peasant who lost his rights to common land after the enclosures wrote to the local lord: 'Should a poor man take one of your sheep from the common, his life would be forfeited by law.In this context, it may be noted that the amount of discount allowed cannot exceed the amount that had been received on forfeited shares on their original issue, and that the discount allowed on reissue of forfeited shares should be debited to the 'Share Forfeited Account'.The balance of shares forfeited account is shown as an addition to the total paid-up capital of the company under the heading 'Share Capital' on the liabilities side of the balance sheet till the forfeited shares are reissued.The management of a company is vested with the power to reissue the shares once forfeited by it, subject of course, to the terms and conditions in the articles of association relating to the same.Hence, when a part of the forfeited shares are reissued, the whole balance of Share Forfeited Account cannot be transferred to the capital reserve.Where shares forfeited were originally issued at a discount, the discount applicable to such shares must be cancelled or written back.In such a case, the company has the authority to forfeit shares of the defaulters.Accordingly, share capital account is debited with the amount calledup in respect of shares are forfeited and crediting the espective unpaid calls account's or calls in arrears account, as the case may be will the unpaid amount, and share foreited account with the amount already received.When shares are forefeited all entries relating to the shares forfeited, except those relating to premium, already recorded in the accounting records, must be reversed.The shares can be reissued even at a discount provided the amount of discount allowed does not exceed the credit balance of forfeited shares' account relating to shares being reissued.