Out of subscribed Capital of the Company, 200 Equity Shares of ₹100 each were forfeited for non-payment of the Final Call of ₹30 per share. Out of these, 150 shares were reissued at ₹60 per share. The amount to be transferred to Capital Reserve will be:
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → ₹4,500
Only the forfeited amount relating to the reissued shares, less the discount allowed on them, is a capital profit.
Amount forfeited per share = 100 − 30 (unpaid final call) = Rs. 70
Forfeited amount on 150 shares = 150 × 70 = Rs. 10,500
Discount on reissue = 150 × (100 − 60) = Rs. 6,000
Transferred to Capital Reserve = 10,500 − 6,000 = Rs. 4,500
The forfeited amount on the 50 shares not reissued (Rs. 3,500) stays in Share Forfeiture Account.
NCERT (2026-27 edition):
NCERT (2026-27 edition):
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