Cartoon Plc Is Listed on the London Stock Exchange $\text { Forfeit the shares: }$

Cartoon Plc is listed on the London Stock Exchange.It has 3 million shares issued at a price of £5.50 per share.The investors were required to pay £2.00 on application and £1.00 on allotment.Both these amounts were paid in full.A first and final call of £2.50 was made and was due on 30 August 2013.At the end of November the directors of the company elect to forfeit 50 000 shares on which the holders have failed to pay the call.Cartoon Plc reissues the shares fully paid up for a price of £4.75 and incurred costs of £1500.What are the entries required to forfeit the shares,reissue the shares,and make a refund if appropriate?

A) $\text { Forfeit the shares: }$
$\begin{array}{|l|l|r|r|}\hline \mathrm{Dr} & \text { Share capital } & 150000 & \\\hline \mathrm{Cr} & \text { Forfeit shares account } & & 150000 \\\hline\end{array}$

$\text { Reissue the shares: }$
$\begin{array}{|c|l|r|r|}\hline \mathrm{Dr} & \text { Cash at bank } & 87500 & \\\hline \mathrm{Cr} & \text { Share capital } & & 87500 \\\hline & & & \\\hline \mathrm{Dr} & \text { Forfeit shares account } & 1500 & \\\hline \mathrm{Cr} & \text { Cash at bank } & & 1500 \\\hline\end{array}$

$\text { Refund the shares: }$
$\begin{array}{|l|l|r|r|}\hline \mathrm{Dr} & \text { Forfeit shares account } & 148500 & \\\hline \mathrm{Cr} & \text { Cash at bank } & & 148500 \\\hline\end{array}$
B) $\text { Forfeit the shares: }$
$\begin{array}{|l|l|r|r|}\hline \mathrm{Dr} & \text { Share capital } & 275000 & \\\hline \mathrm{Cr} & \text { Call } & & 125000 \\\hline \mathrm{Cr} & \text { Forfeit shares account } & & 150000\\\hline\end{array}$

$\text { Reissue the shares: }$
$\begin{array}{|l|l|r|r|}\hline \mathrm{Dr} & \text { Cash at bank } & 237500 & \\\hline \mathrm{Dr} & \text { Forfeit shares account } & 37500 & \\\hline \mathrm{Cr} & \text { Share capital } & & 275000 \\\hline \mathrm{Dr} & \text { Forfeit shares account } & 500 & \\\hline \mathrm{Cr} & \text { Cash at bank } & & \\\hline\end{array}$


Refund the shares:
No entry required
C) $\text { Forfeit the shares: }$
$\begin{array}{|l|l|r|r|}\hline \mathrm{Dr} & \text { Share capital } & 275000 & \\\hline \mathrm{Cr} & \text { Call } & & 125000 \\\hline \mathrm{Cr} & \text { Forfeit shares account } & & 150000 \\\hline\end{array}$


$\text { Reissue the shares: }$
$\begin{array}{|l|l|r|r|}\hline\mathrm{Dr} & \text { Cash at bank } & 237500 & \\\hline \mathrm{Dr} & \text { Forfeit shares account } & 37500 & \\\hline \mathrm{Cr} & \text { Share capital } & & 275000 \\\hline & & & \\\hline \mathrm{Dr} & \text { Forfeit shares account } & 1500 & \\\hline \mathrm{Cr} & \text { Cash at bank } & & 1500\\\hline\end{array}$

$\text { Refund the shares: }$
$\begin{array}{|l|l|r|r|}\hline \mathrm{Dr} & \text { Forfeit shares account } & 111000 & \\\hline \mathrm{Cr} & \text { Cash at bank } & & 111000 \\\hline\end{array}$
D) $\text { Forfeit the shares: }$
$\begin{array}{|l|l|r|r|}\hline \mathrm{Dr} & \text { Share capital } & 150000 & \\\hline \mathrm{Cr} & \text { Forfeit shares account } & & 150000 \\\hline\end{array}$

$\text { Reissue the shares: }$
$\begin{array}{|c|l|r|r|}\hline \text { Dr } & \text { Cash at bank } & 87500 & \\\hline \mathrm{Cr} & \text { Share capital } & & 87500 \\\hline & & & \\\hline \mathrm{Dr} & \text { Forfeit shares account } & 1500 & \\\hline \mathrm{Cr} & \text { Cash at bank } & & 1500\\\hline\end{array}$

Refund the shares:
None to be made