Question

3,000 equity shares of ₹10 each were issued at ₹5 per share premium. Only ₹9 per share (including premium) has been paid on these shares. These shares were forfeited. Later on out of these, certain shares were reissued at a discount of ₹1 per share as fully paid and ₹4,800 were transferred to Capital Reserve. How many shares were re-issued?

Options

• 960

• 600

• 1,200

• 1,600

Answer 1

1,600

Explanation:

Issue price = ₹10 + ₹5 premium = ₹15; paid per share = ₹9 (incl. premium).

Amount received towards capital per share = 9 − 5 = ₹4 → credited to Share Forfeiture.

Reissue at ₹1 discount ⇒ discount per share adjusted from forfeiture = ₹1.

Transfer to Capital Reserve per reissued share = forfeiture (₹4) − discount (₹1) = ₹3.

Given total transfer = ₹4,800 ⇒ number of shares

= 4,800 ÷ 3

= 1,600.