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Which of the following given statements are true ?

(A) Share Capital is not shown under Equity & Liabilities in the Balance Sheet.

(B) Forfeited shares cannot be re-issued at a discount.

(C) Securities Premium Reserve can be used for issuing bonus shares.

(D) Capital reserve account has a credit balance.

Choose the correct answer from the options given below:

Solution

✅ Correct Option: 2

(A) is false. Share Capital appears under Shareholders' Funds within Equity and Liabilities.

(B) is false. Forfeited shares may be reissued at a discount limited to the amount already forfeited.

(C) is true under Section 52 of the Companies Act, 2013.

(D) is true, as Capital Reserve is created out of capital profits and always carries a credit balance.

Hence (C) and (D) only.

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