Question

800 shares of ₹100 each issued at a premium of ₹20 each were forfeited for non payment of allotment money of ₹20 per share (including premium ₹10 per share) and first call of ₹30 per share (including premium ₹10 per share). Final call on these shares at ₹30 per share was not made. 600 of the forfeited shares were re-issued @ ₹95 per share fully paid and ₹21,000 were transferred to Capital Reserve and many shares were re-issued?
Amount transferred to Capital Reserve will be:

विकल्प

• 600

• 1,400

• 525

• 700

Answer 1

600

Explanation:

Amount received on Application	₹40 per share
Less: Loss (Discount) on re-issue	₹5 per share
Gain on re-issued shares transferred to Capital Reserve	₹35 per share

Total amount transferred to Capital Reserve = ₹21,000

∴ No. of shares re-issued `=(21,000)/35`

= 600 shares