124. A company forfeited 2,000 shares of 10 each fully called, on which 12,000 has been paid. Out of these 1600 shares were re-issued upon payment of 13,200. What is the amount to be transferred to capital Reserve ? (a) 9,200 (b) 6,800 (c) 9,600 (d) 12,000 only 6 ner share was naid Of 125 forfoited
Answers
Answer:
Correct option is
D
Rs. 18,000
The company debits a certain amount to the share capital at the time of forfeiture of shares which is always the called up value. And the called up value is that amount which any company demands from its shareholders periodically every year.
The share capital is debited because the called up amount which the company was expecting from was shareholders has not been deposited and thus they have to reduce the capital balance by debiting share capital account.
Share capital amount can be calculated as under:
Share Capital Amount = Called up value per share × No. of shares
Substitute values in the above equation
Share Capital Amount = Rs9 ×2000 shares =Rs18,000
The amount debited to share capital is Rs18,000.
Answer:
B 6800
Explanation:
Forfiture entery
2000 Shares paid 12000
1600 Shares paid 12000*1600/2000 = 9600
Reissue Entery
1600*10-13200 = 2800
Capital Reserve = 9600-2800=6800