Question

can the balance in shares forfeited account be used?​

Answer 1

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Forfeited amount on shares is used for discounting re-issue of same shares and the balance is transferred to Capital Reserve i.e. 2,000.

Answer 2

Answer:

When shares are forfeited, the shareholder's name is removed from the register of members and the amount already paid by him on shares is forfeited to the capital. It is a capital gain and is credited to Forfeited Shares Account. A forfeited share may be reissued even at a loss.