A Ltd. Reissued 2,000 shares which were forfeited by crediting Share Forfeiture account by Rs. 3,000. These shares were reissued at Rs. 9 Per share fully paid of ₹10. What will be the amount of profit transferred to Capital reserve Account?

₹1000

The correct answer is option 1- ₹1000.

Bank A/c Dr.(2000*9) 18,000
Share forfeiture A/c Dr. 2,000
     To Share Capital A/c (2000*10) 20,000
(Being forfeited shares re-issued)

Share Forfeiture A/c Dr. 1000
      To Capital Reserve 1000
(balance in share forfeiture account transferred to capital reserve)