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Goodwill Valuation (Retirement)

J Ltd. Reissu...

Question

J Ltd. Reissued $2, 000$ shares which were forfeited by crediting share forfeited by credited share forfeiture account by Rs. $3000$ . These shares were reissued at Rs. $9$ Per share. The amount transferred to capital reserve will be.

A

Rs.

3000

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B

Rs.

2000

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C

Rs.

1000

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D

NIL

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Solution

The correct option is C Rs. $1000$
Bank A/c Dr.(20009) 18,000
Share forfeiture A/c Dr. 2000
To Share Capital A/c (200010) 20,000
(Being forfeited shares re-issued)

Share Forfeiture A/c Dr. 1000
To Capital Reserve 1000
(balance in share forfeiture account transferred to capital reserve)

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