Question

how to calculate capital reserve when reissued at premium? ​

Answer 1

At the time of reissue of forfeited shares a discount of Rs 2 per share is allowed so the total amount of discount of Rs 400 is adjusted from the forfeited amount of Rs 600 and the balance amount of Rs 200 is transferred to Capital Reserve A/c being acapital gain.

Answer 2

Answer:

(toral amount of share forfieted/no of forfieted shares- no of reissued shares)- loss on reissued shares

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