Maharashtra State BoardHSC Commerce 12th Board Exam
Advertisement Remove all ads

State, Whether the Following Statements is True Or False. - Book Keeping and Accountancy

MCQ
True or False

State, whether the following statements is True or False.
Forfeited shares are reissued at par only.

Options

  • True

  • False

Advertisement Remove all ads

Solution

False
Explanation:
 Forfeited shares can be issued at par, at a discount or at a premium, as decided by the board of directors. The forfeited amount is transferred to Share Forfeiture Account. However, when the forfeited shares are reissued, the balance amount is transferred to the Capital Reserve Account.

Concept: Accounting Treatment of Forfeiture and Re-issue of Share
  Is there an error in this question or solution?
Advertisement Remove all ads

APPEARS IN

Micheal Vaz Accounts - Book Keeping and Accountancy HSC 12th Standard Maharashtra State Board
Chapter 10 Company Accounts Part - 1 (Accounting for Shares)
Exercise | Q 10 | Page 351
Advertisement Remove all ads
Advertisement Remove all ads
Share
Notifications

View all notifications


      Forgot password?
View in app×