The director of Doly Plastic Limited resolved that 300 equity shares of Rs. 100 each be forfeited for non-payment of the second and final call of Rs. 30 per share. Out of these, 150 shares were re-issued at Rs. 60 per share to Manan. What will be the amount transferred to capital reserve?
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → Rs. 4,500
On reissue, the discount allowed is met out of the forfeited amount of the shares reissued, and the balance of that amount is transferred to Capital Reserve. Only the shares actually reissued are taken; the forfeited amount on the other shares stays in Share Forfeiture Account.
Amount paid per share before forfeiture = Rs. 100 − Rs. 30 = Rs. 70
Forfeited amount on 150 reissued shares = 150 × Rs. 70 = Rs. 10,500
Discount on reissue (as fully paid) = Rs. 100 − Rs. 60 = Rs. 40 per share
Discount on 150 shares = 150 × Rs. 40 = Rs. 6,000
Capital Reserve = Rs. 10,500 − Rs. 6,000 = Rs. 4,500
The shares are taken as reissued fully paid, the usual reading when the question gives only the reissue price.
Note: NTA picked this question from an NCERT (2026-27) illustration and changed the figures. Do not ignore NCERT while practising numericals.
NCERT (2026-27 edition):
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