The Profit on reissue of forfeited share

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Target Exam

CUET

Subject

-- Accountancy Part A

Chapter

Accounting for Shares

Question:

The Profit on reissue of forfeited shares is transferred to-

Options:

general reserve

capital redemption reserve

capital reserve

reserve capital

Correct Answer:

capital reserve

Explanation:

The correct answer is Option (3) → capital reserve