What to do in case of share forfeiture if amount of capital reserve is negative or its is 0?
What entry is passed in both the cases?

Dear Student


After the reissue of forfeited shares the amount left in share forfeiture account is profit on reissue, This amount is transferred to capital reserve and if Capital reserve has :
1.  0 Balance then it would simply increase the balance of capital reserve.
2. Negative balance then it would reduce the negative balance of capital reserve.

Journal entry for transferring money from share forfeiture to capital reserve would be same always :

Share Forfeiture A/c	Dr.	xxx
To Capital Reserve A/c			xxx
(Being profit on reissue transferred to capital reserve)

Hope this helps
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Regards