Advertisements
Advertisements
Question
Yuvraj Ltd. forfeited 1,000 shares of ₹10 each issued at 20% premium (₹8 Called up) on which application of ₹2 each and allotment of ₹5 each (including premium) has been received. Out of these, ..... shares were reissued for ₹6 per share (₹8 paid up) and ₹2,100 was transferred to Capital Reserve. How many shares were re-issued?
Options
420
262
700
300
MCQ
Advertisements
Solution
700
Explanation:
| Amount received on Application & Allotment (excluding premium) | ₹5 per share |
| Less: Loss (Discount) on re-issue | ₹2 per share |
| Gain on re-issued shares transferred to Capital Reserve | ₹3 per share |
| Total amount transferred to Capital Reserve | ₹2,100 |
No. of shares re-issued = `2100/3`
= 700 shares
shaalaa.com
Is there an error in this question or solution?
