After reissue of forfeited shares, the balance in 'Shares Forfeited Account' is transferred to: MCQ with Answer and Explanation

Question
After reissue of forfeited shares, the balance in 'Shares Forfeited Account' is transferred to:
A. Securities Premium
B. Profit & Loss
C. Capital Reserve
D. General Reserve
Answer: Option C
Solution (By JKSSB Mock Tests)
Any profit on reissue (excess of forfeited amount over reissue loss) is transferred to Capital Reserve.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
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Practice More Accountancy and Book Keeping Questions

Question #1
Which accounting principle justifies treating a calculator as an expense rather than a fixed asset?
A. Materiality
B. Dual Aspect
C. Going Concern
D. Consistency
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Correct Answer: Option A

Explanation:
The Materiality principle states that trivial costs (like a calculator) should be expensed immediately rather than capitalized and depreciated, due to their immaterial impact.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #2
The process of transferring entries from journal to ledger is called:
A. Journalizing
B. Recording
C. Posting
D. Balancing
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Correct Answer: Option C

Explanation:
Posting is the process of transferring debit and credit amounts from journal to respective ledger accounts.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #3
The 'Limited Liability Partnership' (LLP) is governed by:
A. Companies Act, 2013
B. Indian Contract Act
C. Limited Liability Partnership Act, 2008
D. Partnership Act, 1932
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Correct Answer: Option C

Explanation:
LLP is a separate legal entity governed by LLP Act, 2008.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
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