A ltd forfeited 100 shares of ₹10 each for non-payment of final call of ₹3 per share. All the forfeited shares were re-issued at ₹9 per share. What amount will be transferred to Capital Reserve A/c?

₹600

The correct answer is option 2- ₹600.

Total shares = 100
Par value of each share = ₹10
Unpaid amount per share = ₹3 (final call)
Total amount received = 10 - 3
                                    =  ₹7

Amount Forfeited = 100 x 7
                            = ₹700 (Received amount)

Journal entry on forfeiture:
Share Capital A/c Dr.   ₹1000 ( 100 x 10)
  To Share final Call A/c       ₹300 (100 x 3)
  To share forfeiture A/c      ₹700 (100 x 7)

Shares are reissued at ₹9 each means there is Loss on Reissue of ₹1 per share.
Amount received on share reissue = 100 x 9
                                                       = ₹900

Loss on reissue = 100 x 1
                          = ₹100
Amount transferred to capital reserve = 700 - 100
                                                               = ₹600