Following is the extract of journal in BXC Ltd for Forfeiture of shares:
| Date | Particulars | Debit(Rs.) | Credit(Rs.) |
|---|---|---|---|
| i | Share Capital A/c Dr. | 20,000 | |
| To Shares Forfeiture A/c | 14,000 | ||
| To Share Second & Final Call A/c | 6,000 | ||
| (Being shares forfeited for non-payment of final call at Rs.30 per share) | |||
| ii | Bank A/c Dr. | 9,000 | |
| Shares Forfeiture A/c Dr. | 6,000 | ||
| To Share Capital A/c | 15,000 | ||
| (Being Reissue of shares of Rs.100 each, issued as fully paid for Rs.60 each) |
Which of the following statements are true ?
(A) The number of reissued shares is 150.
(B) The number of reissued shares is 200.
(C) The number of forfeited shares is 200.
(D) The amount of share forfeited A/c transferred to capital reserve A/c will be Rs. 4500.
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → (A), (C) and (D) only
Both entries can be read backwards to the number of shares.
Entry (i): unpaid final call Rs. 6,000 at Rs. 30 per share = 200 shares forfeited (Rs. 20,000 ÷ Rs. 100 = 200 too)
Entry (ii): share capital credited Rs. 15,000 at Rs. 100 each = 150 shares reissued
Forfeited amount per share = Rs. 14,000 ÷ 200 = Rs. 70
Forfeited amount on the 150 reissued shares = 150 × Rs. 70 = Rs. 10,500
Less the discount on reissue Rs. 6,000, so capital reserve = Rs. 4,500
(A) The number of reissued shares is 150. Correct. Rs. 15,000 of share capital at Rs. 100 each.
(B) The number of reissued shares is 200. Incorrect. 200 is the number forfeited; only 150 of them were reissued.
(C) The number of forfeited shares is 200. Correct. Rs. 6,000 ÷ Rs. 30 per share.
(D) The amount of share forfeited A/c transferred to capital reserve A/c will be Rs. 4500. Correct. Only the gain on the reissued shares goes to capital reserve: Rs. 10,500 − Rs. 6,000.
Note: This question is from NCERT (2026-27). NTA sets numerical questions from NCERT too, so do not ignore NCERT while practising numericals.
NCERT (2026-27 edition):
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