Accounting · Company Accounts
Which one of the following statements is incorrect?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Forfeited shares can be reissued.
- 2A notice of 14 days to shareholders is necessary before forfeiture of shares.
- 3Premium on issue of shares can be used for writing off preliminary expenses.
- 4The profit on re-issue of forfeited shares is transferred to the General Reserve Account.✓
Correct answer
The profit on re-issue of forfeited shares is transferred to the General Reserve Account.
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