A company forfeited 2,000 shares of ₹10 each on which ₹7 has been called up and ₹5 has been paid. Out of these 1,500 shares are reissued for ₹9 as fully paid. What is the amount to be transferred to the Capital reserve account?

₹6,000

The correct answer is option 1-₹6000.

Journal entry on forfeiture-
Share Capital A/c Dr.    ₹14,000 (Calledup amount 2000 x 7)
       To Share Final Call A/c     ₹4,000 (Not received 2000 x 2)
       To Share Forfeiture A/c   ₹10,000 (2000 X  5 Received amount)
(Forfeiture of 2000 shares)

Journal entry on reissue-
Bank A/c Dr.                  ₹13,500 (1500 x 9)
Share Forfeiture A/c Dr.  ₹1,500 (1500 x 1)
       To Share Capital A/c            ₹15,000 (1500 x 10)
(Reissue of 1500 forfeited shares)

AMOUNT RELATED TO 1500 SHARES =10,000/2000 X 1500
                                                         = 7,500

Amount used in reissue = 1,500
Amount available in share forfeiture = 7,500
Amount transferred to capital reserve = 7,500 - 1,500
                                                       = 6,000