27. X Ltd forfeited 1000 sharts of 10 each for non-payment of final call of 3 each. After reissue of 600 of these shares 3,000 were transferred to capital reserve. Share were reissued for (explain also) : (a) * 1,200 (b) 4,800 (c) 3,600 (d) * 4,000. (b) Ans. B but idk how?
Answers
Explanation:
Correct option is B)
Forfeiture amount per share is the amount to be received by the company on forfeiture of each share.
ForfeitureAmount=ApplicationAmount+AllotmentAmount
Substitute the values in above equation
ForfeitureAmount=Rs8
Forfeiture amount is the money received by company on forfeiture (cancellation of share) or on the reissue of share.
ForfeitureAmount=No.ofshares×ForfeitureAmount
Substitute the values in the above equation
ForfeitureAmount=1000shares×Rs8=Rs8,000
Forfeitureamountonreissue=1000sahres×Rs2=Rs2,000
Profit on the reissue is the profit earned by the company when the forfeited shares are reissued
Profitonreissue=ForfeitedAmountonforfeiture+ForfeitedAmountonreissue
Substitute the values in the above equation
Profitonreissue=Rs8,000−Rs2,000=Rs6,000
Hence, the profit n reissue is Rs 6,000.