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Question
A Ltd. forfeited 2,000 shares of ₹10 each fully called up for non-payment of final call of ₹2 per share. 1,200 of these shares were reissued at ₹7 per share, fully paid up. What is the amount to be transferred to Capital Reserve Account?
Options
₹7,600
₹1,200
₹12,400
₹6,000
MCQ
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Solution
₹6,000
Explanation:
Face value = ₹10, called up fully = ₹10 × 2,000 = ₹20,000
Unpaid = Final call ₹2 × 2,000 = ₹4,000
Amount received = ₹20,000 − ₹4,000 = ₹16,000
Issued at ₹7 as fully paid (face value ₹10)
Discount = ₹3 per share
Total discount = 1,200 × 3 = ₹3,600
Forfeiture related to 1,200 shares = (16,000 ÷ 2,000) × 1,200
= ₹9,600 − Discount allowed = ₹3,600
= ₹6,000 transferred to Capital Reserve
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Chapter 6: Company Accounts - Issue of Shares - OBJECTIVE TYPE QUESTIONS [Page 6.207]
