A companys share capital consists of 100 000 ordinary shares issued at $4 and paid...
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Accounting
A companys share capital consists of 100 000 ordinary shares issued at $4 and paid to $2 per share. On 1 February, a first call of $1 was made on the ordinary shares. By 28 February, call money was received on 90 000 shares. On 31 March, the shares on which calls were outstanding were forfeited. The companys constitution provided for any surplus on resale to be returned to the shareholders whose shares were forfeited. On 15 April, the forfeited shares were reissued as paid to $4.00 for a payment of $3.50 per share. The entry to record the reissue of the forfeited shares is:
Group of answer choices
Cash Dr 35 000
Forfeited shares Dr 5 000
Share capital ordinary Cr 40 000
Cash Dr 5 000
Forfeited shares Dr 35 000
Share capital ordinary Cr 40 000
Cash Dr 35 000
Share capital ordinary Cr 35 000
Share capital Dr 35 000
Forfeited shares Cr 35 000
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