Re-issue of forfeited shares is allotment of shares but not a sale. [May 2018, 2 Marks]
Options
A
B
C
D
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Company AccountsQ-3 | Introduction to Company AccountsQuestion 5216 of 112
All Questions Correct Answer
✅ Option — Correct Option
All Options:
- A
- B
- C
- D
Detailed Solution & Explanation
False: A forfeited share is merely a share available to the company for sale and remains
vested in the company for that purpose only. Reissue of forfeited shares is not allotment of
shares but only a sale as they have already been allotted earlier.
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Re-issue of forfeited shares is allotment of shares but not a sale. [May 2018, 2 Marks]
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