The balance of the forfeited shares account after re issue of forfeited shares is transferred to ........

General Accounting Principles Accounting for Shares

The balance of the forfeited shares account after re-issue of forfeited shares is transferred to :

Statement of Profit & Loss

Share Capital A/c

Capital Reserve A/c

General Reserve A/c

- Statement of Profit & Loss (Option 1):

- Not used for transferring balances from forfeited shares.

- Typically records operational income and expenses.

- Share Capital A/c (Option 2):

- Represents the total amount raised through shares.

- Does not receive balances from forfeited shares.

- Capital Reserve A/c (Option 3):

- Used for non-operational profits and specific purposes.

- Correct Answer: Capital Reserve A/c

- General Reserve A/c (Option 4):

- Used for general financial strengthening.

- Not typically the account for forfeited shares.

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