200 shares of Rs. 100 each issued at a premium of Rs. 10 were forfeited for the non-payment of allotment money of Rs. 60 per share including premium. The first and final call of Rs. 20 per share on these shares were not made. The forfeited shares were reissued at Rs. 70 per share as fully paid-up. Find the amount of capital reserve.
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → Nil
Capital reserve is the balance left in Share Forfeiture A/c after the discount on reissue is charged to it.
Issue price = Rs. 100 + Rs. 10 premium = Rs. 110 per share
Unpaid: allotment Rs. 60 (premium included) and call Rs. 20 (not made)
Amount received = Rs. 110 − Rs. 60 − Rs. 20 = Rs. 30 per share, all on application
The premium was unpaid, so it is cancelled; Share Forfeiture A/c is credited with Rs. 30 × 200 = Rs. 6,000
Discount on reissue = Rs. 100 − Rs. 70 = Rs. 30 per share = Rs. 6,000, charged to Share Forfeiture A/c
Balance of Share Forfeiture A/c = Rs. 6,000 − Rs. 6,000 = nil
Nothing is left to transfer, so the capital reserve is nil.
Note: This question is from NCERT (2026-27). NTA sets numerical questions from NCERT too, so do not ignore NCERT while practising numericals.
NCERT (2026-27 edition):
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