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Balance of share forfeiture account becomes

When shares are forfeited (non-payment of allotment/call money) and later reissued, the Share Forfeiture Account balance represents the amount received from shareholders initially. After adjusting for any loss on reissue (if reissued at discount), the remaining credit balance in Share Forfeiture Account is transferred to Capital Reserve Account. Capital Reserve is created from capital profits and cannot be distributed as dividends. Reserve Capital is different - it's the portion of uncalled share capital that can be called only in winding up.