Y Ltd. forfeited 400 shares of Rs. 10 each, Rs. 7 called up, for nonpayment of the first call of Rs. 2 per share. Out of these, 300 shares were re-issued for Rs. 6 per share as Rs. 7 paid up. What is the amount to be transferred to Capital Reserve A/c?

Rs. 1,700

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Rs.1,200

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Rs. 2,100

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Rs. 300

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Solution

The correct option is B
Rs.1,200

Profit on Reissue = 300Rs. 5 = Rs. 1,500

Loss on Reissue = 300Rs. 1 = Rs. 300

Amount transferred to Capital Reserve A/c = Rs. 1,500-Rs. 300 = Rs 1,200

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Similar questions

(a) Ravi Ltd. forfeited 800 shares of Rs 10 each, Rs 7.50 paid, for non-payment of Final Call of Rs 2.50 per share. Out of these, 600 shares were re-issued as fully paid up in such a way that Rs 2,100 were transferred to capital reserve. Pass necessary journal entries.

(b) X Ltd. forfeited 800 shares of Rs 10 each, Rs 7.50 called-up, for non-payment of Final Call of Rs 2.50 per share. Out of these, 600 shares were re-issued for Rs 6 per share as Rs 7.50 paid up. Pass necessary journal entries.

(c) 400 shares of Rs 10, on which Rs 8 has been called and Rs 6 has been paid, are forfeited. Out of these, 300 are re-issued for Rs 7 as fully paid. Pass necessary journal entries.

Give Journal entries for forfeiture and re-issue of shares:

(i) A Ltd. forfeited 1,000 shares of Rs 10 each, Rs 7 called up, issued at a premium of 20% (to be paid at the time of allotment) for non-payment of a first call of Rs 2 per share. Out of these, 600 shares were re-issued as Rs 7 paid up for Rs 4 per share.

(ii) B Ltd. forfeited 1,000 shares of Rs 10 each, Rs 7 called up, issued at a premium of 20% (to be paid at the time of allotment) for non-payment of allotment money of Rs 4 per share (including premium) and first call of Rs 2 per share. Out of these, 600 shares were re-issued as fully paid in such a way that Rs 900 were transferred to capital reserve.

Ravi Ltd., forfeited 800 shares of Rs. 10 each, Rs. 7.50 paid, for non-payment of Final call of Rs. 2.50 per share. Out of these, 600 shares were re-issued at Rs. 6 per share as fully paid up. Calculate the amount to be transferred to Capital Reserve?

Pass journal entries for the Forfeiture and Re-issue in the following cases:

(a) X Ltd. forfeited 200 shares of Ravi of Rs 10 each Rs 8 called up, on which he had paid application and allotment money of Rs 3 per share. Out of these, 100 shares were re-issued as fully paid up for Rs 8 per share.

(b) Y Ltd. forfeited 300 shares of Rs 10 each, Rs 7 called up, for non-payment of First Call of Rs 2 per share. Out of these, 100 shares were immediately re-issued at Rs 6 per share.

(c) Z Ltd. forfeited 600 shares of Rs 10 each, on which first call of Rs 3 per share was not received; the second and final call of Rs 2 per share has not yet been called. Out of these, 200 shares were re-issued as Rs 8 paid-up for Rs 7 per share.

Q. Y Ltd. forfeited 300 shares of Rs.10/- each for non-payment of allotment money of Rs.4/- first call and second call of Rs.2/- each. All the shares were re-issued @ Rs.10 paid up. Calculate the amount transferred to capital reserve.

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Y Ltd. forfeited 400 shares of Rs. 10 each, Rs. 7 called up, for nonpayment of the first call of Rs. 2 per share. Out of these, 300 shares were re-issued for Rs. 6 per share as Rs. 7 paid up. What is the amount to be transferred to Capital Reserve A/c?

The correct option is B Rs.1,200 Profit on Reissue = 300*Rs. 5 = Rs. 1,500 Loss on Reissue = 300*Rs. 1 = Rs. 300 Amount transferred to Capital Reserve A/c = Rs. 1,500-Rs. 300 = Rs 1,200

The correct option is B
Rs.1,200

Profit on Reissue = 300Rs. 5 = Rs. 1,500

Loss on Reissue = 300Rs. 1 = Rs. 300

Amount transferred to Capital Reserve A/c = Rs. 1,500-Rs. 300 = Rs 1,200