Question 9 of 61beginner🧠 RememberShort Answer1 mark
The Profit on reissue of forfeited shares is transferred to:
(i)
general reserve
(ii)
capital redemption reserve
(iii)
capital reserve
(iv)
revenue reserve
Explanation
The provided context explicitly states that the balance remaining in the Share Forfeited Account after the reissue of forfeited shares represents a capital profit. Specifically, the text notes that this balance 'should be treated as capital profit and transferred to Capital Reserve Account'. It further clarifies that only the proportionate amount relating to the reissued shares is transferred to Capital Reserve, while the rest is kept in the Share Forfeited Account.