Question

Which account is credited at the time of reissue of forfeited shares?

• A. Share Capital Account
• B. Bank Account
• C. Share Forfeiture Account
• D. Calls in Arrears Account

Hint:

At reissue of forfeited shares: \[ \text{Share Capital A/c is always credited} \]

Answer 1

The Correct Option is A

Concept: When forfeited shares are reissued:
• Bank Account is debited
• Share Capital Account is credited If reissued at discount: \[ \text{Share Forfeiture A/c} \] is debited.

Step 1: Understanding reissue entry.
General journal entry: \[ \text{Bank A/c Dr.} \] \[ \text{Share Forfeiture A/c Dr. (if discount)} \] \[ \text{To Share Capital A/c} \]

Step 2: Identifying credited account.
The credited account is: \[ \text{Share Capital Account} \]

Step 3: Final answer.
Hence: \[ \boxed{\text{Share Capital Account}} \] Correct option: \[ \boxed{(A)} \]