Multiple choice

Having re-issued all forfeited shares, the credit balance remaining in Shares Forfeited account is transferred to

  1. general reserve

  2. revenue capital

  3. capital reserve

  4. share capital
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

 Any balance remaining in the Share Forfeiture account after providing for any loss on re-issue is to be transferred to capital reserve account.

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