The directors of a company forfeited $1000$ shares of Rs. $10$ each, Rs. $7.50$ paid up, for non payment of final call money of Rs. $2.50$ per share. $700$ of these shares are reissued $@$ Rs. $7 / -$ per share. The amount transferred to capital reserve A/c would be__________.

Rs.

2, 500

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Rs.

3, 150

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Rs.

3, 500

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Rs.

5, 400

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Solution

The correct option is B Rs. $3, 150$
Equity share final call A/c Dr. 2500
To Equity share capital 2500
(Being final call due)

Equity share capital A/c Dr. 10,000
To calls in arrear 2500
To share forfeiture 7500
(being shares forfeited)

Bank A/c Dr 4900
Share Forfeiture A/c Dr 2100
To Equity share capital 7000
(Being 700 shares re-issued)

Share forfeiture A/c 3150
To Capital Reserve 3150
(Being balance on 700 shares in share forfeiture account transferred to capital reserve)

Notes:- Balance in share forfeiture A/c = 7500
Amount for 700 shares = 7500/1000*700 = 5250
Less: Amount Utilised = (2100)
Balance left 3150

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The directors of a company forfeited 1000 shares of Rs. 10 each, Rs. 7.50 paid up, for non payment of final call money of Rs. 2.50 per share. 700 of these shares are reissued @ Rs. 7/− per share. The amount transferred to capital reserve A/c would be__________.

The directors of a company forfeited $1000$ shares of Rs. $10$ each, Rs. $7.50$ paid up, for non payment of final call money of Rs. $2.50$ per share. $700$ of these shares are reissued $@$ Rs. $7 / -$ per share. The amount transferred to capital reserve A/c would be__________.