Question

The Directors of a company forfelted 200
Equity shares of Rs. 10 each on whih Rs.8 has
been paid the shares were re-issued upon
payment of Rs. 1500 Amount transferred to
capital reserve will be​

Answer 1

Answer:

Balance of share forfeiture = 200×8=1600

shares of the face value of rs 2000 issued for rs 1500

it means loss on reissue is 2000-1500=500

amount transferred to capital reserve will be 1600-500=1100

Answer 2

Answer:

Amount transfered to capital reserve is 1100.

Explanation:

• Balance of Forfeited shares:

= 200 × 8 = 1600

• As in the given question, we can say that Shares with a face value of rs 2000 are issued at a discounted price of rs 1500. Therefore, there is a loss in reissue of:

= 2000 - 1500 = 500

• Amount transferred to capital reserve will be:
• = 1600 - 500
• = 1100