A Ltd. forfeited 4,000 shares of ₹20 each, fully called up on which application money of  ₹6 has been paid. Out of these 2,000 shares were reissued and ₹8,000 has been transferred to capital reserve. Calculate the rate at which the forfeited shares are reissued.

₹18 per share

The correct answer is Option (1) - ₹18 per share.

4000 shares are forfeited. Journal entry for this-
Share capital A/c Dr.    80,000(4,000 x 20)
           To Share Allotment A/c         ₹56,000 (4000 x 14)
           To Share forfeiture A/c         ₹24,000 (4000 x 6)

Share forfeiture balance for 4,000 shares = 24,000
For 2,000 shares it will be = 24,000/4,000 x 2,000
                                     = ₹12,000

When these are reissued ₹8,000 will be transferred to capital reserve which means remaining (12,000 -8,000) i.e. ₹4,000 used at discount at time of reissue.

Journal entry for reissue-
Bank A/c Dr.                  36,000 (2,000 x 18)
Share forfeiture A/c Dr.  4,000 (2,000 x 2)
      To Share Capital A/c         ₹40000 (2,000 x 20)

The share are reissued for ₹18 per share.