The directors of Y limited forfeited 200 preference shares of ₹ 100 each for non payment of call money of ₹30 per share. Out of this 150 were reissued at ₹60 per share as fully paid up. Find the amount transferred to capital reserve.

₹4,500

The correct answer is Option (2) - ₹4,500.

Journal entry for forfeiture-

Share Capital A/c Dr.   ₹20000 (200 x 100)
    To Share call A/c                ₹6000 (200 x 30)
    To Share Forfeiture A/c       ₹14000 (200 x 70)

150 were reissued at ₹ 60 per share as fully paid up.
Journal entry for reissue-

Bank A/c Dr.                     ₹9000 (150 x 60)
Share forfeiture A/c  Dr.    ₹6000 (150 x 40)
         To Share Capital A/c         ₹15000 (150 x 100)

Amount related to share forfeiture for 150 shares = 14000/200 x 150
                                                                        = ₹10500
Amount used in reissue = 6000
Amount transferred to capital reserve = 10500 - 6000
                                                        = ₹4500