Question : The forfeited amount on shares not yet reissued is shown in the Balance Sheet as an addition to the:
Option 1: Reserves and Surplus
Option 2: Called Up Capital
Option 3: Authorised Share Capital
Option 4: Paid up Share Capital
Answer (1)
21st Jan, 2024
Correct Answer: Paid up Share Capital
Solution : The forfeited value on shares that haven't been reissued yet is added to the paid-up share capital in the notes to accounts under the subscribed capital portion in the share capital sub-head, under the Shareholders Funds head on the Balance Sheet.
Hence the correct answer is option 4.
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