Give answer on the basis of Information given below.
Poonam Ltd. invited applications for 5,00,000 shares of ₹10 each @10% premium payable as follows:
Application - ₹3
Allotment - ₹5 [including premium]
1st and final call - balance
Applications were received for 6,60,000 shares. Applications for 60,000 shares were rejected and pro-rata allotment was made as follows:
(a) 4,00,000 shares - full
(b) 2,00,000 shares - 50%
Mr. Aman, who was allotted 500 shares under category (a), paid full amount along with allotment money. Whereas another shareholder, Mr. Rahul, who was allotted 1000 shares under category (b) failed to pay the allotment money. His shares were subsequently forfeited. These shares were reissued at ₹14 per share as ₹7 paid up. Final call has not yet been made.
Amount transferred to capital Reserve will be:
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → ₹6,000
Amount forfeited on Rahul’s 1,000 shares = ₹6,000 (the amount he had paid).
The shares are reissued at ₹14 for ₹7 paid up, i.e. at ₹7 above the paid-up value, so no discount is allowed on reissue; the extra ₹7 per share goes to Securities Premium Reserve.
Balance of Share Forfeiture on the reissued shares = ₹6,000 − nil = ₹6,000, transferred to Capital Reserve.
NCERT (2026-27 edition): |