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Question
New India Ltd. forfeited 500 shares of ₹100 each, ₹75 called-up, issued at 10% premium (to be paid at the time of allotment) for non-payment of allotment money of ₹30 per share (including premium) and first call of ₹20 per share. Out of these, certain shares were re-issued as fully paid-up for no per share and ₹1,000 were transferred to Capital Reserve. How many shares were re-issued?
Amount transferred to Capital Reserve will be:
Options
₹40
₹28
₹200
₹50
MCQ
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Solution
₹200
Explanation:
| Amount received on Application | ₹35 per share |
| Less: Loss (Discount) on re-issue | ₹30 per share |
| Gain on re-issued shares transferred to Capital Reserve | ₹5 per share |
Total amount transferred to Capital Reserve = ₹1,000
∴ No. of shares re-issued `= (1,000)/5`
= 200 shares
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