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Commerce · Q929

Legal Aspects of Business

Graduate and Post Graduate · Commerce · question 929

Q929

Which one of the following statements is not correct?

A.
Forfeited shares can be reissued
B.
A notice of 14 days to shareholders is necessary before forfeiture of shares
C.
Premium on issue of shares can be used for writing off the preliminary expenses
D.
The profit on re-issue of forfeited shares is transferred to General Reserve Account
Answer

Answer: Option D

Solution

Answer: Option D
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