Accounting

Share Capital: Types, Issue, Forfeiture and Reissue of Shares

Corporate accounting chapter on share capital structures under Companies Act 2013, covering issue at par/premium/discount, calls in arrears, forfeiture, and reissue.

Appears in: UP TGT Commerce Tracker → UP PGT Commerce Tracker →

1. Syllabus Overview & Exam Focus

In the official teacher recruitment and competitive syllabus, Share Capital: Types, Issue, Forfeiture and Reissue of Shares is a core examination unit of Accounting. Questions test definitions, accounting/management principles, legal provisions, formulas, and real-world commercial applications.

2. Key Concepts & Essential Principles

Key exam concepts and principles for Share Capital: Types, Issue, Forfeiture and Reissue of Shares:

Classification of Shares: Equity shares (voting rights, residual claims) vs Preference shares (cumulative, redeemable, participating, convertible). Issue of Shares: Issue for cash and consideration other than cash; pro-rata allotment in case of over-subscription; Securities Premium Reserve (Sec 52). Forfeiture of Shares: Cancellation of membership due to non-payment of calls; accounting treatment and credit balance in Forfeited Shares Account. Reissue & Capital Reserve: Reissue of forfeited shares at par/premium/discount; maximum discount rules and transfer of net profit to Capital Reserve Account.

3. Self-Assessment & Study Checklist

Use this interactive checklist to verify your exam preparation status for this topic:

Read theoretical notes & conceptual summary Memorized essential definitions, formulas & accounting entries Solved minimum 20 previous years' questions (PYQ) Attempted timed self-assessment test Marked complete on main syllabus tracker