Read the following passage and answer the following questions.

BCD Ltd. invited applications for 1,00,000 shares of ₹10 each which is payable as follows-
Application - ₹2
Allotment - ₹3
First and final Call - Balance amount

Applications for 3,00,000 shares is received by the company. Company made pro-rata on the all applicants and adjust excess money towards allotment only. Mr. A shareholder who had applied for 3,000 shares failed to pay call money due to which company forfeited his shares and reissued at ₹8 per share as fully paid.

How much amount will be transferred to the capital reserve?

₹3,000

The correct answer is option 3- ₹3,000

Journal entry for the forfeiture of shares of Mr. A is-
Share Capital A/c   Dr. (1,000 x 10) ₹10,000
          To Share first and final Call (1,000 x 5) ₹5,000
          To Share forfeiture A/c (1,000 x 5)        ₹5,000
(Forfeiture of 1,000 shares on which ₹5 is received and final call not received)

Journal entry for reissue of shares-
Bank A/c         Dr. (1,000x 8) ₹8,000
Share forfeiture A/c D. (1,000 x 2) ₹2,000
       To Share Capital A/c (1,000 x 10)    ₹10,000

Amount in share forfeiture account = 5,000
Amount used on reissue of shares = 2,000
Amount transferred to capital reserve = 5,000 - 2,000
                                                            = ₹3,000
Journal entry for this =
Share forfeiture A/c Dr.    ₹3,000
       To Capital reserve A/c      ₹3,000

So, amount transferred to capital reserve is ₹3,000.

NOTE-
No. of shares applied = 3,000
Who applied for 3,00,000 got 1,00,000 shares.
So, Mr. A allotted = 1,00,000/3,00,000 x 3,000
                           = 1,000 shares.