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The account which is not used in journal entry of the forfeiture of shares is:

  1. A
    Share capital account.
  2. B
    Capital reserve account.
  3. C
    Securities premium account.
  4. D
    Calls in arrears account.

Solution & Step-by-step Explanation

The standard journal entry for forfeiture of shares is:




The Capital Reserve Account is only used later when the forfeited shares are reissued, not in the initial entry of forfeiture itself.

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The account which is not used in journal entry of the forfeiture of shares is:
A
Share capital account.
B
Capital reserve account.
C
Securities premium account.
D
Calls in arrears account.

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