The account which is not used in journal entry of the forfeiture of shares is:
- AShare capital account.
- BCapital reserve account.
- CSecurities premium account.
- DCalls 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.
The Capital Reserve Account is only used later when the forfeited shares are reissued, not in the initial entry of forfeiture itself.