Question :
At the time of the reissue of all forfeited shares
Option 1:
General Reserve is debited with the credit balance left in the Forfeited Shares Account
Option 2: General Reserve is credited with the credit balance left in the Forfeited Shares Account
Option 3:
Capital Reserve is debited with the credit balance left in the Forfeited Shares Account
Option 4:
Capital Reserve is credited with the credit balance left in the Forfeited Shares Account
Correct Answer:
Solution :
Answer = Capital Reserve is credited with the credit balance left in the Forfeited Shares Account
Capital Reserve is credited with the credit balance left in the Forfeited Shares Account. Entry will be:
Share Forfeiture A/c Dr. To Capital Reserve A/c Hence, the correct answer is 4.
When shares are forfeited, Share Capital Account is debited with
An increase in the value of assets at the time of retirement of a partner is
On the retirement of a partner, unrecorded liabilities are
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