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Balance of Share Forfeited Account on the forfeited share not yet re-issued is:
Question

Balance of Share Forfeited Account on the forfeited share not yet re-issued is:

A.

Shown in the Shareholder’s Fund

B.

Transferred to Capital Reserve

C.

Transferred to Capital Redemption Reserve

D.

Transferred to General reserve

Correct option is A

The balance of the Share Forfeited Account, for shares that have been forfeited but not yet re-issued, is shown in the Shareholder’s Fund. This account represents the amount received from shareholders whose shares have been forfeited and holds until the shares are re-issued.

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