The director of Priya polymer Limited 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 re-issued at ₹60 per share to Monit. The amount of capital reserve will be:

₹4,500

The correct answer is option 2- ₹4,500.

Journal entry on forfeiture of shares is-
Share Capital A/c          Dr.        20,000 (200 x 100)
          To Shares Forfeiture A/c                  14,000 (200 x 70)
          To Share Final Call A/c                     6,000 (200 x 30)
(200 shares forfeited)

Journal entry on reissue of 150 shares is-
Bank A/c                 Dr.    9,000 (150 x 60)
Share forfeiture A/c  Dr.   6,000 (150 x 40)
      To Share Capital A/c           15,000 (150 x 100)
(Reissue of 150 shares)

Amount in share forfeiture A/c for 200 shares = 14,000
Amount related to 150 shares in share forfeiture A/c =  14,000/200 x 150
                                                                             = 10,500

Amount used in reissue of shares is 6,000.

Amount transferred to Capital reserve = 10,500 - 6,000
                                                        = 4,500