A company reissued 150 shares out of 450 shares of ₹10 at ₹8 as fully paid up. The balance in forfeiture Account for 450 shares was of ₹1500. How much amount would be transferred to Capital Reserve Account?

₹200

The correct answer is option 4- ₹200.

Bank A/c                   Dr.  ₹1,200
Share Forfeiture A/c Dr.  ₹300
       To Share Capital A/c       ₹1,500
(Reissue of 150 forfeited shares at Rs. 8 per share as fully paid)

The balance in forfeiture Account for 450 shares was of ₹1,500.
Amount related to 150 shares = 1,500/450 x 150
                                                = ₹500

This shall leave a balance of ₹200 (500-300) in share forfeited account which should be transferred to Capital Reserve Account by recording the following journal entry:
Share Forfeiture A/c Dr. ₹200
       To Capital Reserve        ₹200
(Profit on reissue of forfeiture)