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.
Amount in the share forfeiture account = 200 X 70
= ₹14,000
150 shares reissued at ₹60 means ₹40 is given discount.
Discount = 150 X 40
= ₹6,000
Amount related to 150 shares = 14,000 x 150/200
= ₹10,500
Amount transferred to capital reserve = 10,500 - 6,000
= ₹4,500