Question

Forfeiture of shares results in the reduction of ______.

पर्याय

• Subscribed Capital

• Authorised Capital

• Reserve Capital

• Fixed Assets

Answer 1

Forfeiture of shares results in the reduction of Subscribed Capital.

Explanation:

Forfeiture of shares means cancellation of those shares where shareholders failed to pay the called-up amount. This reduces the Subscribed Capital because the cancelled shares are no longer part of the company’s capital, while Authorised and Issued Capital remain unchanged.