A company forfeited 400 shares of ₹20 each ₹15 called up, on which application and allotment money of ₹11 per share has been received. Out of these, 100 shares were re-issued as fully paid-up for ₹24 per share. What amount is to be transferred to Capital Reserve?

₹1,100

The correct answer is option 1- ₹1,100.

Total amount called up = 400 X 15
                                    = ₹6,000

Amount forfeited is received amount i.e. = 400 X 11
                                                                = ₹4,400

Amount not received on call = 400 X 4
                                            = ₹1,600

Shares are reissued for ₹24 means they are issued at securities premium. No discount is given on reissue of shares so all the amount of share forfeiture related with the 100 shares are transferred to capital reserve.

Amount transferred to capital reserve for 100 shares = 4,400/400 X 100
                                                                                    = ₹1,100