The Directors of Tivoli Plastics Ltd, resolved that 200 equity shares of ₹100 each be Forfeited for non-payment of the second and final call of ₹30 per share. Out of these, 150 shares were reissued at ₹60 per share as fully paid-up. How much amount will be transferred to Capital Reserve Account?
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → ₹4,500
Only the forfeited amount on the shares that are reissued, less the discount on their reissue, becomes capital profit. The amount forfeited on the 50 shares not yet reissued stays in the share forfeiture account.
Amount received on each share before forfeiture = ₹100 − ₹30 = ₹70
Amount forfeited on 150 reissued shares = 150 × ₹70 = ₹10,500
Discount on reissue = 150 × (₹100 − ₹60) = ₹6,000
Transferred to Capital Reserve = ₹10,500 − ₹6,000 = ₹4,500
Transferring the forfeited amount on all 200 shares would be wrong while 50 of them are still not reissued.
NCERT (2026-27 edition):
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