Arrange in correct sequence with respect to the issue of shares by company.

A. Allotment of shares
B. Forfeiture of shares
C. Application of shares received by the company
D. Reissue of shares
E. Transfer to Capital Reserve

Choose the correct answer from the options given below:

C, A, B, D, E

The correct answer is Option (2) - C, A, B, D, E.

C. Application of shares received by the company: This is the initial step where the company receives applications from individuals interested in buying its shares.

A. Allotment of shares: After receiving applications, the company decides to whom it will allot the shares.

B. Forfeiture of shares: If the allottee fails to pay the allotment money or the call money, the company may forfeit the shares.

D. Reissue of shares: Forfeited shares can be reissued to new shareholders.

E. Transfer to Capital Reserve: If after reissue, any balance left in the share forfeiture account then it will be transferred to capital reserve account.