Forfeiture cancels the allotment of defaulting shareholders. The amount already received is retained, but since the shares are no longer held by the shareholder, the subscribed and paid-up capital of the company gets reduced. Authorised capital remains unchanged.
Forfeiture of shares results in the reduction of :
CUET UG 2022 — Accountancy Company Accounts
2022mcqeasy
Forfeiture of shares results in the reduction of :
Official previous-year question
Held on 23 Aug 2022 · Verified 13 Jul 2026.
Options
- A
Reserve Capital
- B
Capital Reserve
- C
Authorised Capital
- D
Paid-up Capital
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