a company forfeited 4,000 shares of'10 each on which application money of 3 has beenpaid. out of these 2,000 shares were reissued as fully paid up and 4000 has been transfered to capital reserve. calculate the rate at which these share were reissued ? pls explaain too
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share capital a/c. dr 40000
To share forfeiture a/c. 28000
To calls in arrear a/c. 12000
bank a/c. dr 10000
share forfeiture a/c. dr 10000
To share capital a/c. 20000
share forfeiture a/c. dr. 4000
To capital reserve. 4000
Working note
profit on 4000 share =28000
profit on 2000 share = 28000/4000×2000
=14000
(-) amount transferred
to capital reserve. = 4000
loss on reissue. =10000
So company reissued for these share
for₹10000 means 10000/2000=₹5 per share
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