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Niva Ltd. forfeited 200 shares of Rs.10 each, Rs.8 per share called up, which were issued at par for non-payment of 1st call of Rs.3per share. Of these forfeited shares, 160 shares were re-issued subsequently by the company at Rs.5 per share as Rs. 8 paid-up per share. The Amount of profit transferred to Capital Reserve – (a) Rs. 300; (b) Rs. 350; (c) Rs.480; (d) Rs. 320.?
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Niva Ltd. forfeited 200 shares of Rs.10 each, Rs.8 per share called up...
Forfeiture and Re-issue of Shares:
When a shareholder fails to pay the amount due on shares, the company has the right to forfeit those shares. Forfeiture means cancellation of shares and extinguishing the rights of the shareholder on those shares. The forfeited shares can then be re-issued to other interested parties.
Calculation of Forfeiture Amount:
In this case, Niva Ltd. forfeited 200 shares of Rs.10 each for non-payment of the 1st call of Rs.3 per share. The amount due on these shares would be calculated as follows:
Forfeiture Amount = Number of shares forfeited * Amount due per share
= 200 shares * Rs.3 per share
= Rs.600
Transfer to Capital Reserve:
The transfer of profit to the Capital Reserve is done to maintain the financial stability of the company and to ensure that any gains or profits are properly accounted for. In this case, the profit transferred to the Capital Reserve would be the amount realized on re-issue of the forfeited shares.
Calculation of Amount Realized on Re-issue:
Out of the 200 forfeited shares, 160 shares were re-issued subsequently by the company at Rs.5 per share as Rs.8 paid-up per share. The amount realized on re-issue can be calculated as follows:
Amount realized on re-issue = Number of re-issued shares * Re-issue price per share
= 160 shares * (Rs.5 + Rs.8)
= 160 shares * Rs.13
= Rs.2080
Therefore, the profit transferred to the Capital Reserve would be Rs.2080.
Conclusion:
The amount of profit transferred to the Capital Reserve in this case is Rs.2080. Therefore, none of the options provided (a) Rs. 300, (b) Rs. 350, (c) Rs. 480, (d) Rs. 320 are correct.
When a shareholder fails to pay the amount due on shares, the company has the right to forfeit those shares. Forfeiture means cancellation of shares and extinguishing the rights of the shareholder on those shares. The forfeited shares can then be re-issued to other interested parties.
Calculation of Forfeiture Amount:
In this case, Niva Ltd. forfeited 200 shares of Rs.10 each for non-payment of the 1st call of Rs.3 per share. The amount due on these shares would be calculated as follows:
Forfeiture Amount = Number of shares forfeited * Amount due per share
= 200 shares * Rs.3 per share
= Rs.600
Transfer to Capital Reserve:
The transfer of profit to the Capital Reserve is done to maintain the financial stability of the company and to ensure that any gains or profits are properly accounted for. In this case, the profit transferred to the Capital Reserve would be the amount realized on re-issue of the forfeited shares.
Calculation of Amount Realized on Re-issue:
Out of the 200 forfeited shares, 160 shares were re-issued subsequently by the company at Rs.5 per share as Rs.8 paid-up per share. The amount realized on re-issue can be calculated as follows:
Amount realized on re-issue = Number of re-issued shares * Re-issue price per share
= 160 shares * (Rs.5 + Rs.8)
= 160 shares * Rs.13
= Rs.2080
Therefore, the profit transferred to the Capital Reserve would be Rs.2080.
Conclusion:
The amount of profit transferred to the Capital Reserve in this case is Rs.2080. Therefore, none of the options provided (a) Rs. 300, (b) Rs. 350, (c) Rs. 480, (d) Rs. 320 are correct.
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Niva Ltd. forfeited 200 shares of Rs.10 each, Rs.8 per share called up, which were issued at par for non-payment of 1st call of Rs.3per share. Of these forfeited shares, 160 shares were re-issued subsequently by the company at Rs.5 per share as Rs. 8 paid-up per share. The Amount of profit transferred to Capital Reserve – (a) Rs. 300; (b) Rs. 350; (c) Rs.480; (d) Rs. 320.?
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Niva Ltd. forfeited 200 shares of Rs.10 each, Rs.8 per share called up, which were issued at par for non-payment of 1st call of Rs.3per share. Of these forfeited shares, 160 shares were re-issued subsequently by the company at Rs.5 per share as Rs. 8 paid-up per share. The Amount of profit transferred to Capital Reserve – (a) Rs. 300; (b) Rs. 350; (c) Rs.480; (d) Rs. 320.? for B Com 2024 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about Niva Ltd. forfeited 200 shares of Rs.10 each, Rs.8 per share called up, which were issued at par for non-payment of 1st call of Rs.3per share. Of these forfeited shares, 160 shares were re-issued subsequently by the company at Rs.5 per share as Rs. 8 paid-up per share. The Amount of profit transferred to Capital Reserve – (a) Rs. 300; (b) Rs. 350; (c) Rs.480; (d) Rs. 320.? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Niva Ltd. forfeited 200 shares of Rs.10 each, Rs.8 per share called up, which were issued at par for non-payment of 1st call of Rs.3per share. Of these forfeited shares, 160 shares were re-issued subsequently by the company at Rs.5 per share as Rs. 8 paid-up per share. The Amount of profit transferred to Capital Reserve – (a) Rs. 300; (b) Rs. 350; (c) Rs.480; (d) Rs. 320.?.
Niva Ltd. forfeited 200 shares of Rs.10 each, Rs.8 per share called up, which were issued at par for non-payment of 1st call of Rs.3per share. Of these forfeited shares, 160 shares were re-issued subsequently by the company at Rs.5 per share as Rs. 8 paid-up per share. The Amount of profit transferred to Capital Reserve – (a) Rs. 300; (b) Rs. 350; (c) Rs.480; (d) Rs. 320.? for B Com 2024 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about Niva Ltd. forfeited 200 shares of Rs.10 each, Rs.8 per share called up, which were issued at par for non-payment of 1st call of Rs.3per share. Of these forfeited shares, 160 shares were re-issued subsequently by the company at Rs.5 per share as Rs. 8 paid-up per share. The Amount of profit transferred to Capital Reserve – (a) Rs. 300; (b) Rs. 350; (c) Rs.480; (d) Rs. 320.? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Niva Ltd. forfeited 200 shares of Rs.10 each, Rs.8 per share called up, which were issued at par for non-payment of 1st call of Rs.3per share. Of these forfeited shares, 160 shares were re-issued subsequently by the company at Rs.5 per share as Rs. 8 paid-up per share. The Amount of profit transferred to Capital Reserve – (a) Rs. 300; (b) Rs. 350; (c) Rs.480; (d) Rs. 320.?.
Solutions for Niva Ltd. forfeited 200 shares of Rs.10 each, Rs.8 per share called up, which were issued at par for non-payment of 1st call of Rs.3per share. Of these forfeited shares, 160 shares were re-issued subsequently by the company at Rs.5 per share as Rs. 8 paid-up per share. The Amount of profit transferred to Capital Reserve – (a) Rs. 300; (b) Rs. 350; (c) Rs.480; (d) Rs. 320.? in English & in Hindi are available as part of our courses for B Com.
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Here you can find the meaning of Niva Ltd. forfeited 200 shares of Rs.10 each, Rs.8 per share called up, which were issued at par for non-payment of 1st call of Rs.3per share. Of these forfeited shares, 160 shares were re-issued subsequently by the company at Rs.5 per share as Rs. 8 paid-up per share. The Amount of profit transferred to Capital Reserve – (a) Rs. 300; (b) Rs. 350; (c) Rs.480; (d) Rs. 320.? defined & explained in the simplest way possible. Besides giving the explanation of
Niva Ltd. forfeited 200 shares of Rs.10 each, Rs.8 per share called up, which were issued at par for non-payment of 1st call of Rs.3per share. Of these forfeited shares, 160 shares were re-issued subsequently by the company at Rs.5 per share as Rs. 8 paid-up per share. The Amount of profit transferred to Capital Reserve – (a) Rs. 300; (b) Rs. 350; (c) Rs.480; (d) Rs. 320.?, a detailed solution for Niva Ltd. forfeited 200 shares of Rs.10 each, Rs.8 per share called up, which were issued at par for non-payment of 1st call of Rs.3per share. Of these forfeited shares, 160 shares were re-issued subsequently by the company at Rs.5 per share as Rs. 8 paid-up per share. The Amount of profit transferred to Capital Reserve – (a) Rs. 300; (b) Rs. 350; (c) Rs.480; (d) Rs. 320.? has been provided alongside types of Niva Ltd. forfeited 200 shares of Rs.10 each, Rs.8 per share called up, which were issued at par for non-payment of 1st call of Rs.3per share. Of these forfeited shares, 160 shares were re-issued subsequently by the company at Rs.5 per share as Rs. 8 paid-up per share. The Amount of profit transferred to Capital Reserve – (a) Rs. 300; (b) Rs. 350; (c) Rs.480; (d) Rs. 320.? theory, EduRev gives you an
ample number of questions to practice Niva Ltd. forfeited 200 shares of Rs.10 each, Rs.8 per share called up, which were issued at par for non-payment of 1st call of Rs.3per share. Of these forfeited shares, 160 shares were re-issued subsequently by the company at Rs.5 per share as Rs. 8 paid-up per share. The Amount of profit transferred to Capital Reserve – (a) Rs. 300; (b) Rs. 350; (c) Rs.480; (d) Rs. 320.? tests, examples and also practice B Com tests.
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