Question

Mayfair Ltd. forfeited 2,000 shares of ₹10 each, ₹7 called up, on which ₹4 per share (including ₹2 premium) and ₹2 per share on first call has not been paid. Out of these 500 shares were re-issued as fully paid and ₹750 was transferred to Capital Reserve. On re-issue, how much amount will be transferred to Bank A/c?

विकल्प

• ₹3,250

• ₹4,250

• ₹2,250

• ₹5,500

Answer 1

₹4,250

Explanation:

Forfeiture per share = ₹3

For 500 reissued shares, forfeiture available = 500 × 3 = ₹1,500

Given transfer to Capital Reserve = ₹750 ⇒ discount on reissue = 1,500 − 750 = ₹750 ⇒ ₹750/500 = ₹1.50 per share

Reissue price = ₹10 − 1.50 = ₹8.50 ⇒ Bank = 500 × 8.50

= ₹4,250