The discount allowed on reissue of forfeited shares is debited to _________________.

General reserve account

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Capital reserve account

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Revaluation reserve account

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None of these

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Solution

The correct option is D None of these
Reissue of forfeited shares at a discount : When the shares forfeited arereissued at discount, Bank account is debited by the amount received and Share capital account is credited by the paid up amount. The amount of discount allowedis debited to Share Forfeited Account.

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Similar questions

\begin{matrix} Date & Particulars & L.F. & Debit (₹) & Credit (₹) Share Capital A/c Dr. & (i) - - - Securities Premium A/c Dr. & 4,000 To Share Forfeiture A/c & 8,000 To Calls in Arrears A/c & 14,000 ( _____ shares forfeited for non-payment of ₹ _(ii)___ including premium of ₹2 per share) - ----------------------------------------------------------------------------------------------------------------- - Bank A/c Dr. & (iii) - -- - Shares Forfeiture A/c Dr. & (iv) - -- - To Share Capital A/c & (v) - -- - ( _______ shares reissued at ₹9 per share, fully paid at ₹10 per share) - ------------------------------------------------------------------------------------------ - Share Forfeiture A/c Dr. & 1,400 To Capital Reserve A/c & 1,400 (Net gain on reissued shares transferred to capital reserve) \end{matrix}

1000

10

7.50

2.50

700

@

7 / -

\begin{matrix} Date & Particulars & L.F. & Debit (₹) & Credit (₹) Share Capital A/c Dr. & (i) - - - Securities Premium A/c Dr. & 4,000 To Share Forfeiture A/c & 8,000 To Calls in Arrears A/c & 14,000 ( _____ shares forfeited for non-payment of ₹ _(ii)___ including premium of ₹2 per share) - ----------------------------------------------------------------------------------------------------------------- - Bank A/c Dr. & (iii) - -- - Shares Forfeiture A/c Dr. & (iv) - -- - To Share Capital A/c & (v) - -- - ( _______ shares reissued at ₹9 per share, fully paid at ₹10 per share) - ------------------------------------------------------------------------------------------ - Share Forfeiture A/c Dr. & 1,400 To Capital Reserve A/c & 1,400 (Net gain on reissued shares transferred to capital reserve) \end{matrix}

Partner's capital A/c is debited :

100

10

2

9

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