Match the following:

Choose the correct answer from the options given below.

A-III, B- II, C-IV, D-I

The correct answer is option 2- A-III, B- II, C-IV, D-I.

* Liability of shareholder- The liability of the members of the company is limited to the extent of unpaid amount of the shares held by them. In the case of the companies limited by guarantee, the liability of its members is limited to the extent of the guarantee given by them in the event of the company being wound up.

* Buy back of shares- Purchase of own shares. When a company purchase its own shares, it is called ‘Buy-back of Shares’. The company can buy back its own shares either from the free reserves, securities premium or from the proceeds of any shares or other specified securities.

*Not shown in share capital in balance sheet-  Reserve capital is known as the uncalled capital because it is the reserved amount of the company. It is interesting to note that the amount of reserve capital is not depicted in the company's balance sheet.

* Balance of share forfeiture transferred- The balance of the share forfeiture account is a capital profit; hence, it will be transferred to the capital reserve.