Arrange the following events in proper order.

(A) Transfer to capital reserve

(B) Forfeiture of share

(C) Calls in arrears

(D) Reissue of share

Choose the correct answer from the options given below:

(C), (B), (D), (A)

The correct answer is option 4- (C), (B), (D), (A).

(C) Calls in arrears- If shareholders fail to pay the call amount, the outstanding or unpaid calls become known as "calls in arrears." As per Companies Act, 2013, the maximum rate of interest on calls in advance is 12%p.a. As per Companies Act, 2013, the maximum rate of interest on calls in arrears is 10% p.a.

(B) Forfeiture of share- If the calls in arrears are not paid within the stipulated time, the company may decide to forfeit the shares of the defaulting shareholders. The company typically issues a notice to shareholders to inform them about payment otherwise their shares will be forfeited. Forfeiture involves canceling the shares and removing the shareholder's rights.

(D) Reissue of share- After the forfeiture of shares, the company has the option to reissue these forfeited shares to new shareholders. This process helps the company recover the value of the unpaid calls.

(A) Transfer to capital reserve- If after reissued any balance is left in the share forfeited account, it is transferred to capital reserve account as it is capital profit of the company.