200 shares of ₹100 each issued at a premium of ₹10 were forfeited for the non-payment of allotment money of ₹60 (including premium) per share. The first and final call of ₹20 per share on these shares were not made. The forfeited shares were reissued at ₹70 per share as fully paid-up. Capital reserve created after reissue will be.........

Zero

The correct answer is option 3- Zero.

• Face Value per share = ₹100
• Premium = ₹10
• Allotment money (including premium) = ₹60
• Final call not made = ₹20

Journal entry on forfeiture of shares is-
Share Capital A/c          Dr.       16,000 (200 x 80)
Securities premium A/c Dr.       2,000(200 x 10)
          To Shares Forfeiture A/c                  6,000 (200 x 30)
          To Share Allotment A/c                   12,000 (200 x 60)
(200 shares forfeited)

NOTE:

• Application money = ₹100 + ₹10 − ₹60 − ₹20 = ₹30 (paid)
• Allotment money = ₹60 (not paid → reason for forfeiture)
• Final call = ₹20 (not made)

Journal entry on reissue of shares is-
Bank A/c   Dr.               14,000 (200 x 70)
Share Forfeiture A/c      6,000 (200 x 30)
      To Share Capital A/c           20,000 (200 x 100)
(Reissue of 200 shares)

Amount related to 200 shares in share forfeiture A/c =  6,000
Amount used in reissue = 6,000
Remaining amount in share forfeiture account = 0

So, zero will be the answer as no amount is transferred to capital reserve.