Question

KP Ltd. forfeited 1,000 shares of 10 each fully called, on which Rs. 6,000 has been paid.

Out of these, 800 shares were re-issued upon payment of Rs.7,000. What is the amount to be

transferred to capital reserve?

(a) Rs 3,800 (b) Rs 2,800 (c) Rs 1,800 (d) Rs 800​

Answer 1

Answer:

Amount credited in share forfeiture =6000

profit on 1000share is 6000

profit on 800 share is 6000/1000×800=4800

800 shares of face value 8000 are issued for 7000 therefore loss on reissue 1000

amount transferred to capital reserve

= 4800-1000= 3800