The account to which excess amount on share forfeited a/c is transferred.

Question

Give one word / Term / phrase for the following statement : 

The account to which excess amount on share forfeited a/c is transferred.

Answer 1

Capital Reserve 

Explanation: It is a reserve created out of capital profits of an organisation. It is maintained out of profits earned from specific transactions of a capital nature. It is capital reserve to which the excess amount on Share Forfeited Account is transferred. Such excess amount represents the profit on re-issue of forfeited shares.