Mohan Ltd. forfeited 300 shares of ₹100 each, ₹70 called up, for non payment of final call of ₹20 per share. Out of these 200 shares were reissued for ₹60 per share as ₹70 paid up. What amount to be transferred to Capital Reserve account ?

₹8,000

The correct answer is option (4) : ₹8,000

Journal entry for forfeiture of 700 shares-

Share Capital A/c Dr.   ₹21,000 (300 x 70) Calledup amount
    To Share Final call A/c         ₹6,000 (300 x 20) Unpaid amount
    To Share Forfeiture A/c       ₹15,000 (300 x 50) Paid amount

200 were reissued at ₹60 per share as ₹70 paid up.
Journal entry for reissue of 200 shares-

Bank A/c Dr.                     ₹12,000 (200 x 60)
Share forfeiture A/c  Dr.     ₹2,000 (200 x 10)
         To Share Capital A/c         ₹14,000 (200 x 70)

Amount related to share forfeiture for 200 shares = 15,000/300 x 200
                                                                        = ₹10,000
Amount used in reissue = ₹2,000
Amount transferred to capital reserve = 10,000 - 2,000
                                                       = ₹8,000

Thus, ₹8,000 is transferred to capital reserve account.