If the premium on forfeited shares has already been received, then the securities premium reserve account should be.................... at the time of forfeiture of shares.

No treatment

The correct answer is option 4- No treatment.

In case securities premium has been duly received on the shares to be forfeited, the Securities Premium Reserve Account already credited at the time of making call/allotment will not be cancelled at the time of forfeiture of shares. Therefore, securities premium reserve account is neither debited nor credited at the time of forfeiture of shares.