Question:
₹10 per share on 4,000 shares were forfeited for non-payment of final call of ₹2 and application and allotment money was paid. These shares were reissued at ₹8 per share. The minimum amount transferred to Capital Reserve will be:
₹10 per share on 4,000 shares were forfeited for non-payment of final call of ₹2 and application and allotment money was paid. These shares were reissued at ₹8 per share. The minimum amount transferred to Capital Reserve will be:
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When reissued without discount, entire forfeited amount is transferred to Capital Reserve.
Updated On: Jul 4, 2025
- ₹ 8,000
- ₹ 32,000
- ₹ 40,000
- ₹ 48,000
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The Correct Option is B
Solution and Explanation
Forfeited amount = ₹10 - ₹2 (final call unpaid) = ₹8 × 4,000 = ₹ 32,000
Reissued at ₹8 → no discount from forfeited value. So ₹ 32,000 goes to Capital Reserve.
Reissued at ₹8 → no discount from forfeited value. So ₹ 32,000 goes to Capital Reserve.
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