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Discount allowed on reissue of forfeited shares is debited to
ASecurities Premium A/c
BCapital Reserve A/c
CProfit and Loss A/c
DShare Forfeiture A/c
Answer & Solution
Correct answer: D. Share Forfeiture A/c
The discount on reissue is absorbed by the forfeiture account, which holds the money kept from the defaulter.
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