Question

X Ltd. forfeited 500 shares of ₹10 each fully called up for non-payment of final call of ₹3 per share 300 of these shares were reissued at ₹9 per share, fully paid up. What is the amount to be transferred to Capital Reserve Account?

विकल्प

• ₹3,500

• ₹2,100

• ₹3,200

• ₹1,800

Answer 1

₹1,800

Explanation:

Forfeiture of 500 shares
Face value = ₹10 each
alled-up = ₹10 × 500 = ₹5,000
Not received = Final Call ₹3 × 500 = ₹1,500
Amount received = (₹10 − ₹3) × 500 = ₹7 × 500 = ₹3,500

Reissue of 300 shares at ₹9
Face value = ₹10
Reissue price = ₹9
Discount allowed = ₹1 per share
Discount total = ₹1 × 300 = ₹300
Forfeiture balance left after adjustment = 3,500 − 300 = ₹3,200

Capital Reserve Transfer
Forfeiture per share = 3,500 ÷ 500 = ₹7
For 300 reissued shares = 300 × 7 = ₹2,100
Less: Discount allowed on reissue (already adjusted) = ₹300
Net transfer to Capital Reserve = ₹1,800