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    Question

    X Ltd. forfeits shares for non-payment of final call.

    These are reissued at a discount. Where is the discount adjusted?
    A General Reserve Correct Answer Incorrect Answer
    B Share Capital Correct Answer Incorrect Answer
    C Securities Premium Correct Answer Incorrect Answer
    D Forfeited Shares A/c Correct Answer Incorrect Answer

    Solution

    Discount on reissue is adjusted against Forfeited Shares A/c, not General Reserve.

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