Question

Madhu Ltd. forfeited 800 shares of ₹10 each issued at 10% premium to Shyam (₹9 called up) on which he did not pay ₹3 of allotment (including premium) and first call of ₹2. Out of these, 600 shares were re-issued to Ram as fully paid up for ₹9 per share. What is the amount to be transferred to capital Reserve?

पर्याय

• ₹2,400

• ₹1,800

• ₹3,000

• ₹3,600

Answer 1

₹1,800

Explanation:

Per share called (capital) = ₹9 − ₹1 premium = ₹8

Unpaid: Allotment (₹3 incl. prem ₹1 ⇒ capital ₹2) + First call ₹2 ⇒ ₹4 capital unpaid

Amount received (towards capital) per share = 8 − 4 = ₹4

Forfeiture (800 shares) = 800 × 4 = ₹3,200

Transfer to Capital Reserve (for reissued shares):

Forfeiture related to 600 shares = 600 × ₹4 = ₹2,400

Less: Discount on reissue = ₹600

Capital Reserve = ₹1,800