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Commerce Short Question | Gkseries

Q.

Which of the following is not true ?

[A] When all the forfeited shares are not reissued, the forfeited shares account will also show as credit balance equal to gain on forfeiture of shares not yet reissued.
[B] Loss on reissue of shares cannot be more than gain on forfeiture of those shares
[C] At the time of forfeiture of shares, securities premium is debited along with share capital when premium has not been received
[D] When forfeited shares are issued at premium, the premium amount is credited to Capital Reserve Account.
Answer & Explanation

Answer: When forfeited shares are issued at premium, the premium amount is credited to Capital Reserve Account.

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