Question

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​

Answer 1

Answer:

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