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Out of subscribed Capital of Company, 200 Equity Shares of Rs. 100 each were forfeited for nonpayment of the Final Call of Rs. 30 per share. Out of these, 150 shares were reissued at Rs. 60 per share. Amount to be transferred to Capital Reserve will be:

  • a)
    Rs. 6,000

  • b)
    Rs. 5000

  • c)
    Rs. 3,500

  • d)
    Rs. 10,500

Correct answer is option 'B'. Can you explain this answer?
Most Upvoted Answer
Out of subscribed Capital of Company, 200 Equity Shares of Rs. 100 eac...
Forfeiture and Reissue of Shares Calculation:

Forfeited Shares:
- Total Forfeited Shares = 200 shares
- Forfeited Call Amount per Share = Rs. 30
- Forfeited Shares Amount = 200 shares * Rs. 30 = Rs. 6,000

Reissued Shares:
- Reissued Shares = 150 shares
- Reissued Price per Share = Rs. 60
- Reissued Shares Amount = 150 shares * Rs. 60 = Rs. 9,000

Amount to be Transferred to Capital Reserve:
- Total Forfeited Shares Amount - Reissued Shares Amount
- Rs. 6,000 - Rs. 9,000 = Rs. 4,500
Therefore, the amount to be transferred to Capital Reserve will be Rs. 4,500.
Free Test
Community Answer
Out of subscribed Capital of Company, 200 Equity Shares of Rs. 100 eac...
Total forfeited amount ( 200 × 70) = 14000
Amount on 150 shares = Rs. 10500 less
Rs. 6000 = Rs.4500
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Out of subscribed Capital of Company, 200 Equity Shares of Rs. 100 each were forfeited for nonpayment of the Final Call of Rs. 30 per share. Out of these, 150 shares were reissued at Rs. 60 per share. Amount to be transferred to Capital Reserve will be:a)Rs. 6,000b)Rs. 5000c)Rs. 3,500d)Rs. 10,500Correct answer is option 'B'. Can you explain this answer?
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