Question

X Co. Ltd. forfeited 20 shares of Rs 10 each on which Rs 5 per share were paid. The company issued these shares @ Rs 8 fully paid up. Amount transferred to capital reserve will be?​

Answer 1

Answer:

Rs. 100

Shares forfeiture account contains the balance of money paid on the shares forfeited.

Number of shares = 20

Money paid on shares = 2+3 = 5

Money unpaid on shares = (8-5) = 3

Balance in shares forfeiture account before shares were re-issued = 20*5 = 100