Question

R Ltd. forfeited 300 equity shares of Rs. 10 fully called-up, held by Mr. X for non-payment of first call of Rs. 2 and final of Rs. 3 each. However, he paid application money @ Rs. 2 per share and allotment money @ Rs. 3 per share. These shares were reissued at Rs. 7 each. Amount to be transferred to Capital Reserve Account will be Rs. _____.

• A. 1,500
• B. 3,000
• C. 600
• D. 900

Answer 1

The correct option is C 600

Here, 300 shares were forfeited of Rs 10 each and there was non-payment of Rs 2 on first call and Rs 3 on final which makes total non-payment to be Rs 5 per share. The application money was paid at Rs 2 per share i.e. total of Rs 600 and allotment money was paid at Rs 3 per share i.e. Rs 900. The non paid share was reissued at Rs 7 each i.e. Rs 2100. So, amount to be transferred to capital reserve account will be calculated after deducting the amount on unpaid shares from reissued shares i.e. Rs 2100- (Rs 600 +Rs 900) i.e. Rs 600.