Company Accounts

Share Capital

Easy

common

Discount allowed on the reissue of forfeited shares is

Debited to Share forfeiture account.

Debited to Loss on Issue of Shares account.

Debited to Securities Premium account.

Debited to Premium on redemption of capital account.

✅ Correct Option: 1

Forfeited shares may be reissued below face value only to the extent of the amount already forfeited. The discount on reissue is therefore debited to Share Forfeiture A/c, and only the balance left in that account is transferred to Capital Reserve.

2023: 29 May Shift 2

The balance, if any, left in the share forfeited account relating to reissued shares, should be transferred to _______

2025: 16 May Shift 1

What type of subscription took place?

2025: 30 May Shift 1

The balance of the share forfeiture account is shown in the balance sheet under the item :

2025: 26 May Shift 2

Match List-I with List-II

List-I	List-II
(A) Calls in Arrears	(I) Sometimes shareholders pay a part or the whole of the amount of the calls not yet made.
(B) Calls in Advance	(II) When any shareholder fails to pay the amount due on allotment or on any of the calls
(C) Over Subscription	(III) When number of shares applied for is less than the number for which applications have been invited for subscription
(D) Under Subscription	(IV) When applications for more shares of a company are received than the number offered to the public for subscription

Choose the correct answer from the options given below:

2026: 13 May Shift 1

Amount forfeited on shares is shown under which head of the balance sheet?

2026: 23 May Shift 2

Choose the correct order regarding issue of shares process.

A. Receipt of Applications

B. Issue of Prospectus

C. Allotment of Shares

D. Forfeiture of share

Choose the correct answer from the options given below:

Discount allowed on the reissue of forfeited shares is

Solution

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