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Arrange the following steps in order of occurrence in share capital accounting treatment

A. Allotment of shares

B. Forfeiture of shares

C. Share forfeited amount transferred to capital reserve

D. Minimum subscription received

Choose the correct answer from the options given below:

Solution

✅ Correct Option: 4

Allotment can be made only after minimum subscription is received. Forfeiture follows later, when allotment or call money remains unpaid. The balance in Share Forfeiture is transferred to Capital Reserve only after the forfeited shares are reissued.

Order: D, A, B, C.

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