Match List-I with List-II.List-IList-II(A)Discount on reissue of Shar…

Match List-I with List-II.

List-I		List-II
(A)	Discount on reissue of Shares	(I)	Securities Premium Account
(B)	Premium on redemption of Debentures	(II)	Capital Reserve Account
(C)	Premium on issue of Debentures	(III)	Share Forfeiture Account
(D)	Balance of Share Forfeiture Account	(IV)	Loss on Issue of Debenture Account

Choose the correct answer from the options given below:

Answer & explanation

Correct answer: option 4

The correct answer is Option (4) → (A) - (III), (B) - (IV), (C) - (I), (D) - (II)

(A) Discount on reissue of Shares — this matches (III) Share Forfeiture Account. The discount allowed on reissue is met out of the amount forfeited, so it is debited to that account.

(B) Premium on redemption of Debentures — this matches (IV) Loss on Issue of Debenture Account. The premium payable later is a capital loss, recorded in this account when the debentures are issued.

(C) Premium on issue of Debentures — this matches (I) Securities Premium Account. The amount received above face value is a capital gain and is credited there.

(D) Balance of Share Forfeiture Account — this matches (II) Capital Reserve Account. What is left on the reissued shares after the discount is a capital profit.

NCERT (2026-27 edition):
Reissue of Forfeited Shares – “The directors can either cancel or re-issue the forefeited shares. In most cases, they reissue such shares which may be at par, at premium or at a discount. Forfeited shares may be reissued as fully paid at a par, premium, discount. In this context, it may be noted that the amount of discount allowed cannot exceed the amount that had been received on forfeited shares at the time of initial issue, and that the discount allowed on reissue of forfeited shares should be debited to the ‘Forfeited Share Account’. The balance, if any, left in the Share-Forfeited Account relating to reissued Shares, should be treated as capital profit and transferred to Capital Reserve Account.”

NCERT (2026-27 edition):
Terms of Issue of Debentures – “… Notes: 1. When debentures are redeemable at a premium, the premium payable on redemption is debited to ‘Loss on Issue of Debentures A/c’.”