Company Code Region Table In Sap, Nextamz Wireless Thermometer Manual, Hamish Mclachlan Net Worth, Ryann Mcenany Bio, Germanfest Muenster, Tx 2022, Articles A

Disclaimer Copyright. 3 on final call. Dissolution expenses cost 1,600. A person ceases to be a member of the company on a valid surrender of shares. A notice must be sent to shareholder, giving him at least 14 days time to pay the amount due. Illustration 2 (Forfeiture of Shares Issued at Premium): A Company forfeits 100 shares of Rs. Stock options so granted should be considered as dilutive potential equity shares for the purpose of calculating Diluted Earnings Per Share If the transaction is deemed a sale, the seller/borrower (the "transferor") will derecognize the . Right shares can only be issued after two years of the formation of the country or after one year of the first issue of the shares whichever is earlier, as per the Section 81 of Indian Companies Act. 3 on allotment (including premium), Rs. Uploader Agreement. Ruls. This should be done within 28 days of the share buy-back to avoid late fees. The development phase of these requirements internationally was (1) If the premium amount has already been received on the shares, it should remain intact; no entry is to be passed, on forfeiture, in respect of securities premium. accounting treatment of surrender of shares. The cost method is the most used method to account for the repurchase of shares. Provisions of theCompanies Actand Table F:Forfeiture is authorizedby Table F. But theforfeiture is valid only if the procedure laid down inthe Articles is followed. At the end of the fifth year, the basis of the policy is $42,500, and the investment in the contract is $50,000. By whitelisting SlideShare on your ad-blocker, you are supporting our community of content creators. Statutory provisions of Buy Back: -Section 68 of the Companies Act, 2013 empowers a company to purchase its own shares or other securities in certain cases. The company invites its shareholders to a rights issues of 1 share for every 5 shares for $10 per share. It is important to note that where a Company issues Shares without a par The company has not yet started trading and so has no reserves. Its likely that this strategy would have been effective. Deed Of Surrender: A legal document transferring property ownership for a given time period, provided certain conditions are met. All the share money received except from Arun, holding 300 shares, who paid only application and except from Balram, holding 100 shares, who paid upto allotment. Performance Appraisal, Personal Wealth Management BU BBA 4th Semester NEP Notes, Personality in Consumer Behavior: Aspects of Personality & Impact on Consumer Behavior, Physical Distribution System Objective and Decisions Area, Political and Legal impact of Multinational Corporations, Post-purchase dissonance causes and approaches to reducing the same, Practice of Life Insurance Osmania University B.com Notes, Principal of General Insurance Osmania University B.com Notes, Principle of Management free notes download, Principles of Insurance Osmania University b.com Notes, Principles of Management CSJMU NEP BBA Notes, Problems & Suggestive Remedial Measures of Trade Unions, Procedure for Importing the Material and Its Documentation, Process of Strategic Management and Levels at which Strategy Operates, Production & Total Quality Management BMS Notes, Production and Inventory Management Bangalore University BBA Notes, production and operation management free notes download, Production Management CSJMU NEP BBA Notes, Proposition for individual customer Customization of pricing, Proposition for individual customer Customization of product, Purchase of High Consumption Value items like raw materials, Q System and P System of Inventory management, quantitative technique notes free download, Reconciliation of Financial and Cost Accounting, Relationship of Operations Management With Other Functional Areas, Reliability of research instruments-internal consistency procedures, Resume Writing and Corporate Communication, Retail Management Mumbai University BMS Notes, Rights and Duties of Agents and Distributions of International Business, RMB401 Corporate Governance Values and Ethics AKTU, RMBIB04 Trading Blocks & Foreign Trade Frame Work, Rmbib04 trading blocs & foreign trade frame work, RMBMK05 Integrated Marketing Communication MBA NOTES, RMBOP04 World Class Manufacturing and Maintenance Management, Role of Marketing Communications in B2B Markets, Role of SEBI and working of stock Exchanges, Role of SME in Economic Development of INDIA, Roles and Responsibilities of HR Managers, Rural Marketing BU BBA 3rd Semester NEP Notes, sales and distribution notes free download, Sales and Good Act 1930: Conditions and Warranties, Sales and Good Act 1930: Performance of a Contract of Sale, Sales and Good Act 1930: Rights of Unpaid Seller. Satisfaction/Dissatisfaction - loyalty/nonuse or complaint behavior. 2 on application, Rs. State the Legal Provisions Relating to Payment of Dividend. ), The distribution, to qualify as a distribution in partial liquidation, must be in redemption of stock. The balance in the Share Forfeiture A/c is shown under the Share Capital on the liabilities side of the balance sheet. Surrender of shares is valid where it is done to relive the company from going through the formality of forfeiture of shares and the shareholder is willing to surrender the shares. Published by at February 16, 2022. The shareholder failed to pay the allotment money of Rs. definition. Under IRC section 741, a partnership is considered a capital asset (other than in IRC section 751 matters related to inventory and unrealized receivables), and thus, the sale of a partnership interest would trigger capital gain or loss treatment. 9 per share on account of non-payment of Rs. Accounting for Stock BuyBack and Retirement (ASC 505-30) When a company buys back its stock from investor (s), there are two basic approaches depending on whether their intention is to hold those shares in the treasury for future use/reissue, or permanently retire them. A business may pay a provider of goods or services with stock warrants. Terms of Service 7. The premium was payable on allotment. All the share money received except from Arun, holding 300 shares, who paid only application and except from Balram, holding 100 shares, who paid upto allotment. Ultimate effect of Surrender of shares and Forfeiture of Shares is the same because in both cases membership of the shareholder comes to an end. 302(b)(4) were met via a deemed surrender of the shareholders stock. The power to accept surrender of shares cannot be . 10 each, fully called up on which a shareholder has failed to pay the First Call Money of Rs. The Company does not refund such amount to defaulting shareholders. All the share money was received except from John, holding 300 shares, who paid only application and except from Harry, holding 100 shares, who paid up to the allotment. Terms of Service 7. Things World-Class Poker Players Can Teach Business Managers. Please always try and reference everything you do. (2) However, in some cases, when a call is made, Securities Premium Account is credited and when the call is not received in cash, then it is necessary to debit the Securities Premium Account. While the ultimate outcome and the accounting treatment for each may . If you were buying back 10,000 shares 1. I am working for a company where when the company was incorporated a director was issued shares at the nominal value (which have not yet been paid). When Did Queen Victoria Reign, Forfeiture essentially means cancellation. (ii) When shares are surrendered as a short cut to forfeiture of shares when all the circumstances for forfeiture have arisen. Under the "fragmented view," "each share of stock is considered a separate investment," and gain or loss is computed separately on the sale or other disposition of each share. There are many types of collateral that borrowers may offer. Group relief is a mechanism that allows members of a corporation tax loss relief group (for which, see below) to share the benefit of certain corporation tax losses. Content Guidelines 2. It is a short cut to the long procedure of forfeiture of shares. Because no consideration is received for the shares, the surrendering share- The following conditions must be satisfied for the valid forfeiture of shares: 1. 10 each at a discount of 10%. Activate your 30 day free trialto unlock unlimited reading. Holder in this case voluntarily abandons all his shares in favour of the company. Presented By: It is a short cut to the long procedure of forfeiture of shares. If a shareholder has not paid any call on the day fixed for payment thereof and fails to pay it even after his attention is drawn to it by the secretary by registered notice, the Board of Directors pass a resolution to the effect that such shares be forfeited. CFOs report on challenges in the economy, workforce complications, and tech strategies. The best starting point is a brief overview of restricted stock and a comparison of the differences. 80,000 debenture holders and Rs. Cara Membuka Youtube, A mere refusal to take up newly issued shares, to which a shareholder is entitled to, is not a surrender of shares. AccountingNotes.net. 5 on final call. Now customize the name of a clipboard to store your clips. The existing company is liquidated. 2. The stock was sold for 84,000. 10 each at a discount of 10%. Clipping is a handy way to collect important slides you want to go back to later. Free access to premium services like Tuneln, Mubi and more. 81-4 and 90-13.). Therefore, Share Capital Account should be debited at the rate at which it was credited. Primary Menu. So, if you buy back 10,000 shares of stock at $15 per share, you will pay out $150,000 in cash. For example, ABC Co. has 100,000 issued shares with a nominal value of $10 per share and a market value of $15 per share. (a) extinguish or reduce the . Content Guidelines 2. Any upward move by the United States on corporate tax rates could possibly undo the progress made at the global level. That means the recipients need only report income (which will, invariably, be classified as capital gains) to the extent the amount distributed exceeds the basis of the shares surrendered. The formalities with regard to forfeiture are then unnecessary and the shares are deemed to have been forfeited and can-celled without the detailed procedure otherwise required to the purpose. Facing A Wrongful Conviction? Accounting record for surrender of shares is the same as that of forfeiture. 302(b)(4)s redemption requirement. Surrender of Stock to a Corporation Travco Corporation Peter & Karla Fink Peter and Karla Fink were the principal shareholders of Travco Corporation. 07/03/2022 . Provisions in Respect of Number of Directorships. A distribution so qualifies if it is: Sometimes, Articles of Association empowers the Directors to accept Surrender of Shares. Disclaimer 8. Plagiarism Prevention 5. Account Disable 12. Before uploading and sharing your knowledge on this site, please read the following pages: 1. Illustration 1 (Forfeiture of Shares Issued at Par): A company forfeits 100 shares of Rs. 3 per share. Solved Illustrations. Of course, this is true for shareholders other than the ones that are, themselves, C corporations. In 2020 P made a profit of 100K, it also has b/f losses of 160,000 for which a deferred tax asset of 30,400 was recognised in the accounts. 302(b)(4)s redemption requirement. Content Guidelines 2. advantages of masking animation. Company reconstruction accounting entries. Example for Surrender of Shares. The number of shares considered redeemed, the IRS said, is determined in accordance with the principles set forth in Rev. Once the share buy-back is complete and the shares have been cancelled, the company will need to notify ASIC that this has occurred. The main difference between forfeiture and Surrender of Shares are as follow. Environmental science subject notes is there, update kro bhai update krlo """'Madhabi Puri Buch"" hai ab chairmen sebi ki. Surrender is a short cut to forfeiture. (See Rev. All rights reserved. Illustration 5 (Forfeiture of Shares Issued at Premium): A Ltd. had its issued capital comprising 20,000 equity shares of Rs. Right shares are the shares that are issued by a company for its existing shareholders. accounting treatment of surrender of shares The two main rules to account for stock warrants are that the issuer must recognize the fair value of the equity instruments issued or the fair value of the consideration received, whichever can be more reliably measured; and recognize the asset or expense related to the . But it no longer has to be attempted now that the IRS has expanded the meaningless gesture rule. Cash Surrender Value (CSV) in the Insurance Contract Life Insurance CSV $107,615 Life Insurance Premium Expense $107,615 3. December 21, 2020. Prohibited Content 3. The shares were called up to the 1st call stage. Essentially, it implies that it is a negative equity balance. 3 on 1st call and Rs. It must also state that in case of failure, the shares will be forfeited. Life Of Brian Font Generator, The premium was payable on allotment. (Presumably the strike price of the options was lowered and the . A person whose shares have been forfeited ceases to be a member in respect of the forfeited shares. 2nd PUC Accountancy Accounting for Share Capital Short Answer Type . Best 10 different types e-commerce model in 2023. accounting treatment of surrender of shares. Increase in the value of shares and hence no loss of existing shareholders. Copyright 2023 CFO. (a) Preference Share Final Call A/c Dr To Preference Share Capital A/c . Chapter 20, Taxation of Corporate Reorganizations - 4 - A. The distribution, effected on a pro rata basis with respect to the corporations shareholders, was unaccompanied by an actual surrender of stock. [] Franchising decisions are frequently made without the franchisees consent and may be sued for abandonment by the franchisee under, Copyright theintactone 401k forfeiture journal entry This will give rise to a corporation tax charge of more than 50,000 (10,000 per flat), which needs to be funded by the tenants. 10 each issued at Rs. Cost Method. However, the share capital was reduced to . accounting treatment of surrender of sharesfastest supra tune code. We recommend that the bank establish subsidiary accounts for each policy. In short, economically, the option holder was placed in the same position he or she would have occupied had there been an actual retirement of a portion of the shareholders shares. There are two methods of doing ESOP valuation Intrinsic value method and. 2 on application, Rs. A capital transaction exists when a taxpayer sells or exchanges for consideration a capital asset. 10 each, fully called up on which a shareholder has failed to pay the First Call Money of Rs. Illustration 3 (Forfeiture of Shares Issued at Discount): A Company forfeits 100 shares of Rs. The corporation, however, had issued options (to a single employee) to acquire its stock. Topic 11 Liabilities of Banker and Dishonor of Negotiable Instruments like Hundis etc. Forfeiture of shares is referred to as the situation when the allotted shares are cancelled by the issuing company due to non-payment of the subscription amount as requested by the issuing company from the shareholder. Upon forfeiture, the original shareholder ceases to be member and his name must be removed from the register of members. Click here to review the details. Stock appreciation rights that are settled in stock are also equity awards. Meaning, Definition of Business Organisation, How To Cancel Your Franchise Agreement icsid.org, BBA216 Financial Markets and Institutions, GGSIPU (BBA105) Financial Accounting & Analysis HOME | MANAGEMENT NOTES, GGSIPU (BCOM103) Financial Accounting HOME | MANAGEMENT NOTES, Dr. APJ Abdul Kalam Technical University MBA Notes (KMBN, KMB & RMB Series Notes), Guru Gobind Singh Indraprastha University (BBA) Notes, Difference between Memorandum and Articles of Association, Prospectus, Ratio to moving average forecasting method, Maintenance, spares and repairs, and support equipment, 1930 Meaning and Essential Elements of Contract of Sale, 204 Business Statistics 205 Business Environment, 501 Entrepreneurship & Small Business Management, 601 Management Information System 602 Strategic Management & Business Policy, 602 Strategic Management & Business Policy, Advanced Corporate Accounting Bangalore University B.com Notes, Advanced Corporate AccountingOsmania University B.com Notes, Advanced Financial Accounting B.com Notes, Advertising and Other Modes of Communication, Advertising Management CSJMU NEP BBA Notes, ales and Good Act 1930: Transfer of Ownership, ALL QUIZ LINK SUBJECT NAME 1 Marketing Management VIEW 2 Human Resource Management VIEW 3 Information Technology VIEW 4 Agricultural VIEW, An Overview of the International Management Process, Analyzing the Organizations Micro Environment, Application & Strategies Business Model & Revenue Model Over Internet, Application of Marginal Costing in Decision Making, Appraisal and Management Practices in INDIAN Organizations, Approaches to Studying Consumer Behaviour, Artificial Intelligence BU BBA 3rd Semester NEP Notes, Asia-Pacific Economic Co-operation (APEC), Association of South East Asian Nations (ASEAN), Auditing and Reporting Bangalore University b.com Notes, Balancing financial goals vis--vis sustainable growth, Bangalore University NEP 2021 Syllabus Notes, Banking and Financial Services free Notes download, Banking Operations and Innovations Bangalore University BBA Notes, BBA101 Management Process & Organizational Behavior, BBAN202 Macro- Economic Analysis and Policy, BBAN204 Computer Applications in Manageemnt, BBAN501 Production and Materials Management, bban603 foundations of international business, BBAN603 Fundations of International Business, bbusiness communiction free notes book download, BCOM101 Management Process & Organizational Behavior, BCOM202 Fundamentals of Financial Management, BCOM207 Business Ethics & Corporate Social Responsibility, BCOM313 Financial Markets and Institutions, BCOM315 Sales and Distribution Management, BCOM320 International Business Management, Behviourial Science Bangalore University BBA Notes, Brand Management Mumbai University BMS Notes, Building Sales Reporting Mechanism and Monitoring, Business Analytics BU BBA 4th Semester NEP Notes, business communication bba notes download, Business communication BMS Notes Download, Business Communication CSJMU NEP BBA Notes, business communication notes for bba students, Business communication via Social Network, Business EconomicsOsmania University b.com Notes, business ethics and csr notes free download, Business Ethics and Governance CSJMU NEP BBA Notes, Business Fiannce Bangalore University BBA Notes, business policy and strategy notes download, Business Statistics BU BBA 3rd Semester NEP Notes, Business Statistics-2 Osmania University B.com Notes, Buying Situations in Industrial/Business Market, Career Management: Traditional Career Vs. Protean Career, Cash Flow Statement and its Interpretation, Changing face of consumer behavior under the scenario of Globalization, Changing profiles of Major Stakeholders of Industrial Relations in India, Chhatrapati Shahu Ji Maharaj University (CSJMU) Kanpur BBA Notes, Classification of Capital And Revenue Expenditure, Classifications of Services and Marketing Implications, Cognitive Learning Theories to Consumer Behavior, Collective Bargaining in India: Recent Trends, Commercial Bank - Role in Project Finance and working Capital Finance, compensation management free notes download, Compensation Strategy Monetary & Non-Monetary Rewards, Competition Appellate Tribunal : Jurisdiction and Penalties, Computer Applications CSJMU NEP BBA Notes, Concept Relating to Tax Avoidance and Tax Evasion, Consideration in Designing Effective Training Programs: Selecting and Preparing the Training Site, Consumer Attitudes Formation and Change, Consumer behavior effected by Technological Changes, Consumer Behavior in electronic markets: opportunities, Consumer Behavior: Contributing disciplines and area like psychology, Consumer Learning: Applications of Behavioral Learning Theories, Consumer Perception: Perception Process & Involvement, Corporate Accounting Bangalore University b.com Notes, Corporate Accounting Bangalore University BBA Notes, Corporate Accounting Osmania University b.com Notes, Corporate Governance Osmania University b.com Notes, Corporate Restructuring Mumbai University BMS Notes, Corporate University and Business Embedded Model, cost Accounting Osmania University b.com Notes, Cost Control and Management Accounting Osmania University b.com Notes, Cost Management Bangalore University b.com Notes, Costing Methods Bangalore University B.com Notes, Cultural Lessons in International Marketing, Cultural Sensitization Using Sensitivity Analysis, Customer Relationship Management in The Virtual World, Database Management System Data Communication and Networking Operating System Software Engineering Data Structure Computer Organization and Microprocessor Object Oriented Programming, Deductions from total Gross total Incomes for companies, Defining and Measuring Service Quality and Customer Satisfaction, Defining Performance and Selecting a Measurement Approach, Definition of small scale as per MSMED act 2006, Depository and Non-Depository Institutions, Development financial Institutions (DFIs) - An Overview and role in Indian economy, Development of corporate bond market abroad, Differences Between Consumer and Business Buyer Behaviour, Differences between Micro and Macro Environment, Differences between Micro Environment and Macro Environment, Dr. A.P.J. 2. After the stock surrender, the surrendering shareholder owns fewer shares in the corporation, and if there is more than one shareholder, a reduced percentage of stock ownership in that corporation. The power to forfeit shares must be expressly given in Articles of Association of the Company. The accounting guidance does not allow a life insurance asset to exceed cash surrender value less an allowance for credit losses. To date, however, the IRS has only acknowledged one scenario in which it concludes that such an actual surrender would be a meaningless gesture. If the company maintains a Calls in Arrears account, then that account will be credited with the unpaid portion of the amount instead of Share Allotment A/c or Share Call A/c. Consequently, the history of international requirements for the accounting for share-based payments is relatively short compared with other areas of accounting. Such voluntary surrender of shares can be accepted by the . Share capital refers to all of the shares of an enterprise. (Presumably the strike price of the options was lowered and the number of shares to which the options pertained was increased.). Examples of equity awards are stock options, ESPPs, and stock-settled stock appreciation rights (SARs), restricted shares/share units, and performance shares/share units. Assuming the corporation plans to reissue the shares in the future, the shares are held in treasury and reported as a reduction in stockholders' equity in the balance sheet. Powered by and, The Benefits of Right Shares are listed below. fair value method. 3. Article shared by. surrender: [verb] to yield to the power, control, or possession of another upon compulsion or demand. The distribution technique involved with right shares is more scientific. The accounting treatment of surrender of shares is the same as that of forfeiture of shares. The right shares are usually issued in the ratio of the equity shares held by the existing shareholders. PublishYourArticles.net - Publish Your Articles Now, Copyright infringement takedown notification template, 21 Important Questions and Practical Problems on Company Account Share Capital. Scope and Relevance of Consumer Behaviour Studies, scope of production and operation management, Search Engine Optimization & Online Advertising Osmania University B.com Notes, Securities and Exchange Board of India - 1992, SECURITY ANALYSIS AND INVESTMENT MANAGEMENT, Selection and Management of overseas Intermediaries, Social Audit and Social Responsibility of Business, Social Media Marketing Osmania University B.com Notes, Social Media Marketing: Goals and Strategies, Sourcing Material Internationally (Imports), Specialised Accounting CSJMU NEP BBA Notes, Status of Technology in India; Management of Technology, strategic human resource free notes download, Strategic Marketing Management Mumbai University BMS Notes, Strategies for Dealing with Multinationals, Supply Chain Management CSJMU NEP BBA Notes, SUPPLY CHAIN MANAGEMENT FOR INTERNATIONAL BUSINESS, Systems Perspectives of Operations Management, Tariffs and Non-Tariffs Barriers in International Trade, Tasks and Responsibilities of a Professional Manager, Tax Considerations in respect of Specific Financial and Managerial Decisions: Deemed Dividend, Tax Considerations in respect of Specific Financial and Managerial Decisions: Own or Lease, Tax Considerations in respect of Specific Financial and Managerial Decisions: Repair or Renewal, Tax implication of Employee Compensation Package to the Employer, Tax Planning Relating to Merges and Demergers to Companies, Tax Planning with Reference to: Location of Undertaking, Technological Development and Social Change, Technological Leadership and Followership, The Concept of Industrial Relations and Background, The Contract Labor (Abolition & Regulative) act 1970, The Future Direction of Industrial Relations, The price adjustment Mechanisms with Flexible and Fixed Exchange Rates, The Social Responsibility of the Global Firm, Topic 1 Understanding & Developing the Objectives of Training. to a shareholder other than a C corporation; pursuant to a plan, and occurs within the year such plan is adopted or within the succeeding taxable year; and, not essentially equivalent to a dividend.. Asst. Merger A merger, also called amalgamation,12 is a transaction in which all or substantially all the assets and liabilities of one or more transferor companies are transferred to a single transferee Tax Law Design and Drafting (volume 2; International Monetary Fund: 1998; Victor Thuronyi, ed.) Surrender of shares has no separate accounting treatment but it will be like that of forfeiture if shares. The existing shareholders have their right to subscribe to these shares unless some special rights reserve them for some other persons. Illustration 4 (Forfeiture of Shares Originally Issued at Discount): X Ltd. issued 20,000 Equity shares of Rs. A deed of surrender allows one party, such as a renter, to . Again, Securities Premium Account will be debited only if the amount of premium remained unpaid. In this case, the amount reported as ordinary income and capital gain is the same as in Example 2 for a disqualifying disposition, but there are some differences. Mr. Seth, the holder of 1,000 shares did not pay the amount due on call and his shares were forfeited by the Company. After the allotment of shares, sometimes a shareholder is not able to pay the further calls and returns his shares to the company for cancellation. (The shares to which such dividend was attributable would never be issued). 5 per share. Travco urgently needed new capital as a result of financial difficulties it encountered. Surrender is a short cut to forfeiture.Surrender of shares means voluntary return of shares by a member to the company. Introduction to Forfeiture and Reissue of Shares: If a shareholder fails to pay allotment money or a call or a part thereof by the last date fixed for payment, the Board of . A mere refusal to take up newly issued shares, to which a shareholder is entitled to, is not a surrender of shares. Privacy Policy3. Adding property tax content and software to our global compliance portfolio extends Avalaras footprint into a large and exciting new tax type., The payout from local and state governments "came despite an uncertain economy and complaints about Amazon's working conditions.". 9 per share on account of non-payment of Rs. 2023 Owlgen India. the S corporation's method of accounting, i.e., cash or accrual, the date the life insurance proceeds were received, and the method of income allocation (per/share- per/day or closing of the books). 2. In this article we will discuss about the Forfeiture and Reissue of Shares:- 1. A company which bought $100,000 of stock (1000 shares at $100 per share, $10 per share par value) for an ESOP with an ESOP loan would debit cash and the equity contra account for $100,000, while crediting a guaranteed indebtedness liability account for $100,000 and crediting common stock for $10,000 and paid-in capital for $90,000. Now, without any fanfare, we can report that the IRS has relaxed its views. Surrender of shares means the return of shares by the shareholder to the company for cancellation. The issue before the Special Bench was that shares had happened for all shareholders. If they are partly paid, the following entries are passed to make them fully paid. The major life insurance policy types which include a cash surrender value are . The shares were called up to the first call stage. Accounting record for surrender of shares is the same as that of forfeiture. ASC 860, Transfers and Servicing addresses the transfers of financial assets and provides the applicable guidance. (3) On forfeiture of shares which were issued at a discount and if the Discount on Shares Account had already been debited, such discount should be cancelled by crediting the Discount on Share Account. He now wishes to return these shares as he is no longer involved in the company.