Re-Issue of Forfeited Shares allows company to recover value from shares previously forfeited. Process: Declare forfeited shares available for re-issue, Receive applications and allot shares, Collect amounts due. Pricing for Re-Issue: Can be at par value, at premium (above par), or at discount (below par but within limits). Limits on Discount: Discount on re-issue limited to original uncalled amount per share. Example: Original £10 par, £7 called, £3 uncalled; Re-issue discount limited to £3. Journal Entry for Re-Issue: Debit Bank (amount received), Debit Discount on Re-Issue (if applicable), Credit Forfeited Shares Account (par value), Credit Re-Issue Premium (if issued at premium). Gain on Re-Issue: If re-issued at premium or at more than par, gain is realized. Recognized as: Debit Bank, Credit Forfeited Shares Account, Credit Gain on Re-Issue (to Securities Premium or General Reserve). Loss on Re-Issue: If re-issued at loss, loss is recognized. Journal Entry: Debit Bank, Debit Loss on Re-Issue, Credit Forfeited Shares Account. Balance Sheet Treatment: Gain on re-issue shown in Reserves and Surplus (cannot be distributed as dividend), Loss adjusted against Reserves if available, or written to P&L if required. Disclosure: Details of forfeited and re-issued shares shown in Balance Sheet notes. Exam tip: Practice re-issue calculations with gains and losses; understand the discount limits; know the accounting treatment of gains and losses; prepare detailed workings showing par value vs receipt.