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Question
800 shares of ₹100 each issued at a premium of ₹20 each were forfeited for non payment of allotment money of ₹20 per share (including premium ₹10 per share) and first call of ₹30 per share (including premium ₹10 per share). Final call on these shares at ₹30 per share was not made. 600 of the forfeited shares were re-issued @ ₹95 per share fully paid and ₹21,000 were transferred to Capital Reserve and many shares were re-issued?
Amount transferred to Capital Reserve will be:
Options
600
1,400
525
700
MCQ
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Solution
600
Explanation:
| Amount received on Application | ₹40 per share |
| Less: Loss (Discount) on re-issue | ₹5 per share |
| Gain on re-issued shares transferred to Capital Reserve | ₹35 per share |
Total amount transferred to Capital Reserve = ₹21,000
∴ No. of shares re-issued `=(21,000)/35`
= 600 shares
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