Question

NUK Ltd. forfeited 1,000 shares of ₹ 10 each, fully called up for non-payment of final call of ₹ 2 per share. 800 of these shares were reissued at ₹ 11 per share fully paid. The amount credited to Capital Reserve Account will be:

• A. ₹ 6,400
• B. ₹ 8,000
• C. ₹ 7,200
• D. ₹ 10,000

Hint:

The Capital Reserve for reissued shares is calculated from the forfeited amount of reissued shares, not including any premium collected during reissue.

Answer 1

The Correct Option is A

- The total amount called up on 1,000 shares is ₹ 10 per share (fully called up). - The amount forfeited on each share is ₹ 2 (final call remaining unpaid), so the total amount forfeited = ₹ 2 × 1,000 = ₹ 2,000. - For the 800 shares reissued at ₹ 11 per share: - Amount received from reissue = ₹ 11 × 800 = ₹ 8,800. - Paid-up amount on 800 shares = ₹ 10 × 800 = ₹ 8,000. - The difference, ₹ 8,800 - ₹ 8,000, is the premium received, which is not part of the Capital Reserve. - The Capital Reserve comes from the forfeited amount for the 800 shares reissued: \[ Forfeited Amount on 800 Shares} = ₹ 2 × 800 = ₹ 1,600. \] \[ Capital Reserve} = ₹ 6,400. \]