Forfeiture of shares

pne Registered Posts: 4 New contributor 🐸

Can anybody help me with a query I have regarding the forfeiture of shares by a shareholder.

Basically the shareholder holds some shares which are 10% part-paid. The company makes a call for the final 90%, which the shareholder doesn't pay - thereby forfeiting the shares.

The shares then become the property of the company who can re-sell.

How would you account for the forfeiture of the shares initially (i.e. what is the double entry?). The shareholder effectively loses their 10% part payment.

I have tried to find guidance on the web and the IFRS book but to no avail.

Has anybody had this issue before? If so please can you guide me in the right direction.

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