Question

On the forfeiture of 100 shares of ₹50 each, ₹2,500 were credited to share forfeited account. These shares were re-issued at ₹25 per share fully paid up. The amount credited to ‘Capital Reserve Account’ will be:

विकल्प

• ₹2,500

• ₹5,000

• No amount

• ₹3,000

Answer 1

No amount

Explanation:

Forfeited 100 shares of ₹50 each.

Amount credited to Share Forfeiture A/c = ₹2,500 ⇒ forfeiture per share = ₹25.

Reissued at ₹25 fully paid (FV = ₹50) ⇒ Discount = ₹25 per share.

Discount adjusted from forfeiture = 100 × 25 = ₹2,500.

Balance left for transfer = ₹0.