English

Ganesh Ltd. forfeited 2,000 shares of ₹25 each (₹20 called up) held by Riya, for non-payment of allotment money of ₹10 per share (including ₹5 per share premium) and the first call of ₹6 per share. - Accounts

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Question

Ganesh Ltd. forfeited 2,000 shares of ₹25 each (₹20 called up) held by Riya, for non-payment of allotment money of ₹10 per share (including ₹5 per share premium) and the first call of ₹6 per share. Out of these, 1,500 shares were reissued to Jiya as ₹20 called up for ₹16 per share. Amount transferred to capital reserve will be ______.

Options

  • ₹10,500

  • Nil

  • ₹7,500

  • ₹15,000

MCQ
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Solution

₹7,500

Explanation:

 
Amount Called-up per share   20
Less: Capital portion not paid on allotment (10 − ₹5) 5 (11)
Not paid on first call 6
Capital portion paid on forfeited shares   9

 

 
Hence, forfeited amount on 1,500 reissued shares = 1,500 × ₹9 13,500
Less: Loss on Reissue 1,500 × ₹4 (6,000)
Transferred to Capital Reserve 7,500
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Chapter 6: Company Accounts - Issue of Shares - OBJECTIVE TYPE QUESTIONS [Page 6.223]

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D. K. Goel Accountancy Volume 1 and 2 [English] Class 12 ISC
Chapter 6 Company Accounts - Issue of Shares
OBJECTIVE TYPE QUESTIONS | Q 39. | Page 6.223
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