The profit on the re-issue of forfeited shares is transferred to __________ Account.
The profit on re-issue of forfeited shares is transferred to Capital Reserve. It is a capital gain rather than profit from ordinary trading activities.
Choose your answer
The profit on the re-issue of forfeited shares is transferred to __________ Account.
Answer and explanation
Correct answer B
The profit on re-issue of forfeited shares is transferred to Capital Reserve. It is a capital gain rather than profit from ordinary trading activities.
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Kerala SET (LBS Centre)