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3,000 shares of Rs. 10 each of Krishna were forfeited by crediting Rs. 5,000 to share forfeiture account. Out of these, 1,800 shares were re-issued to Radhe for Rs. 9 per share. The amount to be transferred to capital reserve account will be
- a)Rs. 3,200.
- b)Rs. 2,000.
- c)Rs. 1,800.
- d)Rs. 1,200.
Correct answer is option 'D'. Can you explain this answer?
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3,000 shares of Rs. 10 each of Krishna were forfeited by crediting Rs....
Understanding Share Forfeiture and Re-issue
In this scenario, we are analyzing the forfeiture and subsequent re-issue of shares for the company Krishna.
Details of the Forfeiture
- 3,000 shares were originally issued at Rs. 10 each.
- The total nominal value of the shares = 3,000 shares * Rs. 10 = Rs. 30,000.
- Rs. 5,000 was credited to the Share Forfeiture Account when the shares were forfeited.
Calculation of Forfeited Amount
- The amount forfeited per share = Total amount forfeited / Total shares forfeited = Rs. 5,000 / 3,000 shares = Rs. 1.67 per share.
This means that when the shares were forfeited, the company lost Rs. 1.67 for each of the 3,000 shares.
Re-issue of Shares
- Out of the 3,000 forfeited shares, 1,800 shares were re-issued to Radhe at Rs. 9 per share.
- Total amount received from re-issue = 1,800 shares * Rs. 9 = Rs. 16,200.
Calculation of Capital Reserve
- Amount originally credited for forfeiture = Rs. 5,000.
- Amount received on re-issue = Rs. 16,200.
- The gain transferred to Capital Reserve = Amount forfeited - Amount received from re-issue.
- Total forfeited amount for re-issued shares = 1,800 shares * Rs. 1.67 = Rs. 3,006.
- Capital Reserve = Rs. 5,000 (forfeiture) - Rs. 3,006 (adjusted) = Rs. 1,200.
Thus, the amount to be transferred to the Capital Reserve Account is Rs. 1,200, confirming option 'D' as the correct answer.
In this scenario, we are analyzing the forfeiture and subsequent re-issue of shares for the company Krishna.
Details of the Forfeiture
- 3,000 shares were originally issued at Rs. 10 each.
- The total nominal value of the shares = 3,000 shares * Rs. 10 = Rs. 30,000.
- Rs. 5,000 was credited to the Share Forfeiture Account when the shares were forfeited.
Calculation of Forfeited Amount
- The amount forfeited per share = Total amount forfeited / Total shares forfeited = Rs. 5,000 / 3,000 shares = Rs. 1.67 per share.
This means that when the shares were forfeited, the company lost Rs. 1.67 for each of the 3,000 shares.
Re-issue of Shares
- Out of the 3,000 forfeited shares, 1,800 shares were re-issued to Radhe at Rs. 9 per share.
- Total amount received from re-issue = 1,800 shares * Rs. 9 = Rs. 16,200.
Calculation of Capital Reserve
- Amount originally credited for forfeiture = Rs. 5,000.
- Amount received on re-issue = Rs. 16,200.
- The gain transferred to Capital Reserve = Amount forfeited - Amount received from re-issue.
- Total forfeited amount for re-issued shares = 1,800 shares * Rs. 1.67 = Rs. 3,006.
- Capital Reserve = Rs. 5,000 (forfeiture) - Rs. 3,006 (adjusted) = Rs. 1,200.
Thus, the amount to be transferred to the Capital Reserve Account is Rs. 1,200, confirming option 'D' as the correct answer.
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3,000 shares of Rs. 10 each of Krishna were forfeited by crediting Rs. 5,000 to share forfeiture account. Out of these, 1,800 shares were re-issued to Radhe for Rs. 9 per share. The amount to be transferred to capital reserve account will bea)Rs. 3,200.b)Rs. 2,000.c)Rs. 1,800.d)Rs. 1,200.Correct answer is option 'D'. Can you explain this answer?
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3,000 shares of Rs. 10 each of Krishna were forfeited by crediting Rs. 5,000 to share forfeiture account. Out of these, 1,800 shares were re-issued to Radhe for Rs. 9 per share. The amount to be transferred to capital reserve account will bea)Rs. 3,200.b)Rs. 2,000.c)Rs. 1,800.d)Rs. 1,200.Correct answer is option 'D'. 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 3,000 shares of Rs. 10 each of Krishna were forfeited by crediting Rs. 5,000 to share forfeiture account. Out of these, 1,800 shares were re-issued to Radhe for Rs. 9 per share. The amount to be transferred to capital reserve account will bea)Rs. 3,200.b)Rs. 2,000.c)Rs. 1,800.d)Rs. 1,200.Correct answer is option 'D'. 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 3,000 shares of Rs. 10 each of Krishna were forfeited by crediting Rs. 5,000 to share forfeiture account. Out of these, 1,800 shares were re-issued to Radhe for Rs. 9 per share. The amount to be transferred to capital reserve account will bea)Rs. 3,200.b)Rs. 2,000.c)Rs. 1,800.d)Rs. 1,200.Correct answer is option 'D'. Can you explain this answer?.
3,000 shares of Rs. 10 each of Krishna were forfeited by crediting Rs. 5,000 to share forfeiture account. Out of these, 1,800 shares were re-issued to Radhe for Rs. 9 per share. The amount to be transferred to capital reserve account will bea)Rs. 3,200.b)Rs. 2,000.c)Rs. 1,800.d)Rs. 1,200.Correct answer is option 'D'. 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 3,000 shares of Rs. 10 each of Krishna were forfeited by crediting Rs. 5,000 to share forfeiture account. Out of these, 1,800 shares were re-issued to Radhe for Rs. 9 per share. The amount to be transferred to capital reserve account will bea)Rs. 3,200.b)Rs. 2,000.c)Rs. 1,800.d)Rs. 1,200.Correct answer is option 'D'. 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 3,000 shares of Rs. 10 each of Krishna were forfeited by crediting Rs. 5,000 to share forfeiture account. Out of these, 1,800 shares were re-issued to Radhe for Rs. 9 per share. The amount to be transferred to capital reserve account will bea)Rs. 3,200.b)Rs. 2,000.c)Rs. 1,800.d)Rs. 1,200.Correct answer is option 'D'. Can you explain this answer?.
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ample number of questions to practice 3,000 shares of Rs. 10 each of Krishna were forfeited by crediting Rs. 5,000 to share forfeiture account. Out of these, 1,800 shares were re-issued to Radhe for Rs. 9 per share. The amount to be transferred to capital reserve account will bea)Rs. 3,200.b)Rs. 2,000.c)Rs. 1,800.d)Rs. 1,200.Correct answer is option 'D'. Can you explain this answer? tests, examples and also practice CA CPT tests.
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