Question

X LTD. FORFEITED 500 SHARES OF Rs.10 EACH FULLY CALLED UP. FOR NON PAYMENT OF FINAL CALL OF Rs.3 PER SHARES. ALL THE SHARES WERE REISSUED AT Rs.9 PER SHARE,FULLY PAID UP AMOUNT TO BE TRANSFERRED TO CAPITAL RESERVE WILL BE.
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Answer 1

Answer:

Here, 500 shares were forfeited of Rs 10 each and there was non-payment of Rs 5 on the first call and Rs 3 on final which makes total non-payment to be Rs 8 per share which makes it Rs 4000.

The application money was paid at Rs 2 per share i.e. total of Rs 1000.  

The non-paid share was reissued at Rs 10 each i.e. Rs 5000.

So, the amount to be transferred to the capital reserve account will be calculated after deducting the amount on unpaid shares from reissued shares.

i.e. Rs 5000- Rs 4000 i.e. Rs 1000.

Explanation: