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Jadu Ltd. reissued 2,000 shares, which were forfeited by crediting Share forfeiture account by Rs.3,000. These shares were reissued Rs. 9 per share. The amount to be transferred to Capital Reserve account will be
- a)Rs.3,000
- b)Rs.2,000
- c)Rs.1,000
- d)Nil
Correct answer is option 'C'. Can you explain this answer?
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Jadu Ltd. reissued 2,000 shares, which were forfeited by crediting Sha...
To understand the answer, let's break down the given information and analyze it step by step:
1. Jadu Ltd. reissued 2,000 shares: This means that the company had originally issued these 2,000 shares to shareholders, but the shares were forfeited or taken back by the company due to non-payment or non-compliance by the shareholders.
2. The shares were forfeited by crediting Share forfeiture account by Rs.3,000: When the shares were forfeited, the company would have credited the Share Forfeiture Account with the value of the forfeited shares, which in this case is Rs.3,000. This amount represents the value of the forfeited shares.
3. These shares were reissued at Rs. 9 per share: After the shares were forfeited, the company decided to reissue them. The reissue price per share is given as Rs. 9. This means that the company sold the forfeited shares to new shareholders at this price.
Now, let's calculate the amount that needs to be transferred to the Capital Reserve Account:
- The amount to be transferred to the Capital Reserve Account is calculated as the excess of the forfeited amount over the nominal value of the shares forfeited.
- Nominal value refers to the face value or original value of the shares. In this case, the nominal value would be the original issue price of the shares.
- The nominal value of 2,000 shares can be calculated by multiplying the number of shares by the reissue price per share: 2,000 shares * Rs. 9 per share = Rs. 18,000.
- The excess of the forfeited amount over the nominal value is calculated as follows: Rs. 3,000 - Rs. 18,000 = -Rs. 15,000.
Since the result is negative, it means that the forfeited amount is less than the nominal value of the forfeited shares. In this case, no amount needs to be transferred to the Capital Reserve Account.
Therefore, the correct answer is option 'C' - Rs. 1,000.
1. Jadu Ltd. reissued 2,000 shares: This means that the company had originally issued these 2,000 shares to shareholders, but the shares were forfeited or taken back by the company due to non-payment or non-compliance by the shareholders.
2. The shares were forfeited by crediting Share forfeiture account by Rs.3,000: When the shares were forfeited, the company would have credited the Share Forfeiture Account with the value of the forfeited shares, which in this case is Rs.3,000. This amount represents the value of the forfeited shares.
3. These shares were reissued at Rs. 9 per share: After the shares were forfeited, the company decided to reissue them. The reissue price per share is given as Rs. 9. This means that the company sold the forfeited shares to new shareholders at this price.
Now, let's calculate the amount that needs to be transferred to the Capital Reserve Account:
- The amount to be transferred to the Capital Reserve Account is calculated as the excess of the forfeited amount over the nominal value of the shares forfeited.
- Nominal value refers to the face value or original value of the shares. In this case, the nominal value would be the original issue price of the shares.
- The nominal value of 2,000 shares can be calculated by multiplying the number of shares by the reissue price per share: 2,000 shares * Rs. 9 per share = Rs. 18,000.
- The excess of the forfeited amount over the nominal value is calculated as follows: Rs. 3,000 - Rs. 18,000 = -Rs. 15,000.
Since the result is negative, it means that the forfeited amount is less than the nominal value of the forfeited shares. In this case, no amount needs to be transferred to the Capital Reserve Account.
Therefore, the correct answer is option 'C' - Rs. 1,000.
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Jadu Ltd. reissued 2,000 shares, which were forfeited by crediting Share forfeiture account by Rs.3,000. These shares were reissued Rs. 9 per share. The amount to be transferred to Capital Reserve account will bea)Rs.3,000b)Rs.2,000c)Rs.1,000d)NilCorrect answer is option 'C'. Can you explain this answer?
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Jadu Ltd. reissued 2,000 shares, which were forfeited by crediting Share forfeiture account by Rs.3,000. These shares were reissued Rs. 9 per share. The amount to be transferred to Capital Reserve account will bea)Rs.3,000b)Rs.2,000c)Rs.1,000d)NilCorrect answer is option 'C'. Can you explain this answer? for CA CPT 2024 is part of CA CPT preparation. The Question and answers have been prepared according to the CA CPT exam syllabus. Information about Jadu Ltd. reissued 2,000 shares, which were forfeited by crediting Share forfeiture account by Rs.3,000. These shares were reissued Rs. 9 per share. The amount to be transferred to Capital Reserve account will bea)Rs.3,000b)Rs.2,000c)Rs.1,000d)NilCorrect answer is option 'C'. Can you explain this answer? covers all topics & solutions for CA CPT 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Jadu Ltd. reissued 2,000 shares, which were forfeited by crediting Share forfeiture account by Rs.3,000. These shares were reissued Rs. 9 per share. The amount to be transferred to Capital Reserve account will bea)Rs.3,000b)Rs.2,000c)Rs.1,000d)NilCorrect answer is option 'C'. Can you explain this answer?.
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