The Profit on reissue of forfeited shares is transferred to:
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → Capital Reserve
The profit on reissue of forfeited shares does not come from trading; it is a capital profit, and so it is transferred to Capital Reserve, not to a revenue reserve. Capital Redemption Reserve is created on the redemption of preference shares, and Reserve Capital is uncalled capital kept for winding up.
NCERT (2026-27 edition): NCERT (2026-27 edition):
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