On 1 July 2021 the directors of XYZ decided to forfeit the 12,000 shares in respect of which the call of $2.50 was not made. The shares were cancelled and reissued as fully paid to $5 per share on payment of $4 per share. Costs of $800 were incurred to reissue the shares.

What journal entry needs to be recorded for cancellation of forfeited shares?

Answer rating: 100% (QA)

The journal entry for cancellation of forfeited shares ... View the full answer