Question

True or false which forfeited shares are reissed at a discount the discount cannot exceed the amount forfeited on reissued shares

Answer 1

Answer:

If the discount allowed on reissue of shares is less than the forfeited amount, there will be some balance left in the Forfeited Account, which should be transferred to capital reserve, because it is a profit of capital nature. ADVERTISEMENTS: Example: A company forfeited shares of Rs.