Question

400 shares of ₹10, on which ₹8 has been called and ₹5 has been paid, are forfeited. Out of these, 300 shares are re-issued for ₹9 as fully paid. What is the amount to be transferred to Capital Reserve Account?

पर्याय

• ₹1,200

• ₹1,600

• ₹2,000

• ₹1,700

Answer 1

₹1,200

Explanation:

Forfeiture of 400 shares
Called-up = ₹8 × 400 = ₹3,200
Paid = ₹5 × 400 = ₹2,000
Unpaid = ₹3 per share × 400 = ₹1,200

Reissue of 300 shares at ₹9 fully paid
Face value = ₹10, Reissue price = ₹9
Discount = ₹1 per share
Total discount = 300 × 1 = ₹300

Transfer to Capital Reserve
Forfeiture related to 300 reissued shares = (₹5 received per share) × 300 = ₹1,500
Less: Discount allowed = ₹300
Net transfer = ₹1,200