Reissue example sentences

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.Hence, when a part of the forfeited shares are reissued, the whole balance of Share Forfeited Account cannot be transferred to the capital reserve.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.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.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'.Normally, the forfeited shares are reissued as fully paid and at a discount.Another important point to be noted in this context is that the capital profit arises only in respect of the forefited share reissued, and not on all forefeited shares.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.In most cases, however, they reissue special shares which may be at par, at premium or at a discount.Therefore, discount allowed on the reissue of forfeited shares is debited to forfeited shares' account.In such a situation, it is only the proportionate amount of balance that relates to the forefeited shares reissued which should that relates to the forefeited shares reissued which should be transferred to capital reserve, ensuring that the remaining balance in Share forefeited Account is equal to the amount forefeited on shares not yet reissued.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.