As per Schedule (VI) of the Companies Act, $1956$ , forfeited shares account will be ________________.

Added to paid-up capital

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Deducted from called up capital

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Added to capital reserve

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Shown as a revenue reserve

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Solution

The correct option is D Added to paid-up capital
Reduction of issued share Capital of the company. So, Forfeited shares account appears in the Liability side of the Balance Sheet after Share Capital. The amount paid for application, allotment and call money as may be the case is fully confiscated and the same is transferred to Forfeited shares account.

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As per Schedule (VI) of the Companies Act, 1956, forfeited shares account will be ________________.

As per Schedule (VI) of the Companies Act, $1956$ , forfeited shares account will be ________________.