400 shares of ₹50 each issued at par were forfeited for non-payment of final call of ₹10 per share. These shares were reissued at ₹45 per share as fully paid-up. The amount transferred to capital reserve is
The forfeited amount per share is ₹40 (₹50 - ₹10). For 400 shares, the total forfeited amount is ₹16,000. The shares were reissued at ₹45, causing a loss of ₹5 per share (₹50 - ₹45), totaling ₹2,000 loss. Capital Reserve = Total forfeited amount - Reissue loss = ₹16,000 - ₹2,000 = ₹14,000. Correct Answer: Option 2.
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