Economics · Corporate Accounting
Which one of the following statements is NOT correct regarding shares and accountancy rules?
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.
- 3Securities premium on the issue of shares can be used for writing off preliminary expenses.
- 4The profit on the re-issue of forfeited shares is transferred to the General Reserve Account.✓
Correct answer
The profit on the re-issue of forfeited shares is transferred to the General Reserve Account.
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