A company forfeited 100 equity shares of rupees 100 each at a premium ...
share capital a/c (100*80)__8000 to forfeiture a/c 5000 {100×50} to call arrear {100×30} and bank a/c dr {100×70} 7000 forfeiture a/c dr 1000 to sc 100×80 8000 ad forfeiture a c dr 4000 to cr 5000-1000=4000
A company forfeited 100 equity shares of rupees 100 each at a premium ...
Steps to Calculate Amount Credited to Capital Reserve
Step 1: Calculate the amount forfeited
- Total amount forfeited = 100 shares x Rs. 100 per share = Rs. 10,000
Step 2: Calculate the amount received on reissue of forfeited shares
- Reissue price = Rs. 70 per share
- Number of shares reissued = 100 shares
- Total amount received on reissue = 100 shares x Rs. 70 per share = Rs. 7,000
Step 3: Calculate the amount credited to share capital account
- First call amount not received = Rs. 30 per share
- Final call amount = Rs. 20 per share
- Paid-up value of share = Rs. 80 per share
- Amount credited to share capital account = (Paid-up value - First call - Final call) x Number of shares reissued
= (Rs. 80 - Rs. 30 - Rs. 20) x 100 shares
= Rs. 30 x 100 shares
= Rs. 3,000
Step 4: Calculate the amount credited to capital reserve
- Amount credited to capital reserve = Total amount forfeited - Amount credited to share capital account + Amount received on reissue
= Rs. 10,000 - Rs. 3,000 + Rs. 7,000
= Rs. 14,000
Therefore, the amount credited to Capital Reserve is Rs. 14,000.
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