The Profit on reissue of forfeited shares is transferred to :

When shares are forfeited and later reissued, the company receives payment in two stages - first during original issue (before forfeiture) and again during reissue.

The Share Forfeiture Account temporarily holds the amount already received on forfeited shares. When these shares are reissued:

• If reissued at a discount, that discount amount is adjusted from the Share Forfeiture Account
• The remaining balance in Share Forfeiture Account represents the net gain

This gain arises from a capital transaction (issue of shares), not from regular business operations. Any profit from capital transactions must be transferred to Capital Reserve.

Capital Reserve is distinct from other reserves because:

• It's created from capital profits, not trading profits
• It can only be used for specific purposes like issuing bonus shares or writing off capital losses
• It cannot be distributed as dividends

The other options are incorrect because:

• General Reserve is created from revenue profits
• Capital Redemption Reserve is specifically created when shares are redeemed from profits
• Reserve Capital is uncalled capital that can only be called in case of winding up

Therefore, profit on reissue of forfeited shares is transferred to Capital Reserve.