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MAR Ltd forfeited 300 shares of Rs. 10/- each fully called up for non payment of final call money of Rs.4/- per share. These shares are subsequently reissued for Rs.12 per share as fully paid up. What amount should be transferred to capital reserve account.
  • a)
    Rs. 2,400    
  • b)
    Rs. 3,000      
  • c)
    Rs. 1,800
  • d)
    Rs. 3,600
Correct answer is option 'C'. Can you explain this answer?
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MAR Ltd forfeited 300 shares of Rs. 10/- each fully called up for non ...
Heading: Background

MAR Ltd forfeited 300 shares of Rs. 10/- each fully called up for non-payment of final call money of Rs.4/- per share. These shares are subsequently reissued for Rs.12 per share as fully paid up.

Heading: Calculation

To calculate the amount transferred to the capital reserve account, we need to first determine the amount forfeited by the company. The amount forfeited is calculated as follows:

Number of shares forfeited = 300
Face value per share = Rs. 10/-
Amount forfeited per share = Final call money of Rs. 4/- per share
Total amount forfeited = Number of shares forfeited x Amount forfeited per share
= 300 x 4
= Rs. 1200/-

Next, we need to determine the amount received by the company on the reissue of these forfeited shares. The amount received is calculated as follows:

Number of shares reissued = 300
Price per share on reissue = Rs. 12/-
Total amount received on reissue = Number of shares reissued x Price per share
= 300 x 12
= Rs. 3600/-

Finally, we need to calculate the amount transferred to the capital reserve account. This is calculated as the excess of the amount received on reissue over the amount forfeited by the company. Therefore:

Amount transferred to capital reserve account = Total amount received on reissue - Total amount forfeited
= Rs. 3600 - Rs. 1200
= Rs. 2400/-

Heading: Final Answer

Therefore, the correct answer is option 'C' - Rs. 1800.
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MAR Ltd forfeited 300 shares of Rs. 10/- each fully called up for non payment of final call money of Rs.4/- per share. These shares are subsequently reissued for Rs.12 per share as fully paid up. What amount should be transferred to capital reserve account.a)Rs. 2,400 b)Rs. 3,000 c)Rs. 1,800d)Rs. 3,600Correct answer is option 'C'. Can you explain this answer?
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MAR Ltd forfeited 300 shares of Rs. 10/- each fully called up for non payment of final call money of Rs.4/- per share. These shares are subsequently reissued for Rs.12 per share as fully paid up. What amount should be transferred to capital reserve account.a)Rs. 2,400 b)Rs. 3,000 c)Rs. 1,800d)Rs. 3,600Correct answer is option 'C'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about MAR Ltd forfeited 300 shares of Rs. 10/- each fully called up for non payment of final call money of Rs.4/- per share. These shares are subsequently reissued for Rs.12 per share as fully paid up. What amount should be transferred to capital reserve account.a)Rs. 2,400 b)Rs. 3,000 c)Rs. 1,800d)Rs. 3,600Correct answer is option 'C'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for MAR Ltd forfeited 300 shares of Rs. 10/- each fully called up for non payment of final call money of Rs.4/- per share. These shares are subsequently reissued for Rs.12 per share as fully paid up. What amount should be transferred to capital reserve account.a)Rs. 2,400 b)Rs. 3,000 c)Rs. 1,800d)Rs. 3,600Correct answer is option 'C'. Can you explain this answer?.
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