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Question
Forfeiture of shares leads to reduction of ______ Capital.
Options
Authorised
Issued
Subscribed
Called up
MCQ
Fill in the Blanks
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Solution
Forfeiture of shares leads to reduction of Subscribed Capital.
Explanation:
-
Authorised Capital → unchanged.
-
Issued Capital → unchanged.
-
Subscribed Capital → decreases, because the forfeited shares are cancelled and no longer counted as subscribed.
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Chapter 6: Company Accounts - Issue of Shares - OBJECTIVE TYPE QUESTIONS [Page 6.214]
