Mohan Ltd. forfeited 300 shares of ₹100 each, ₹70 called up, for non-payment of the first call of ₹20 per share. Out of these 200 shares were reissued for ₹60 per share as ₹70 paid up. What amount is to be transferred to Capital Reserve account?
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → ₹8,000
Amount paid per share before forfeiture = ₹70 called up − ₹20 unpaid = ₹50
Forfeited amount on the 200 reissued shares = 200 × ₹50 = ₹10,000
Discount on reissue = 200 × (₹70 − ₹60) = ₹2,000
Transferred to Capital Reserve = ₹10,000 − ₹2,000 = ₹8,000
The forfeited amount on the 100 shares not yet reissued (₹5,000) stays in Share Forfeiture Account.