Humanities/Arts Exam > Humanities/Arts Questions > MNO Ltd. forfeited 1,000 shares of Rs. 10 eac...
Start Learning for Free
MNO Ltd. forfeited 1,000 shares of Rs. 10 each on which shareholders had paid only application money of Rs. 3 per share. Out of these, 400 equity shares were reissued as fully paid for Rs. 9 per share. The gain on reissue of shares transferred to Capital reserve is:
- a)Rs. 3,000
- b)Rs. 800
- c)Rs. 1,200
- d)Rs. 1,000
Correct answer is option 'B'. Can you explain this answer?
Most Upvoted Answer
MNO Ltd. forfeited 1,000 shares of Rs. 10 each on which shareholders h...
Share forfeited amount on 1000 shares = Rs. 3000 Cr.
Share forfeited amount 400 × 3 = Rs. 1200 Cr.
Share forfeited on reissue 400 × 1 = Rs. –400 Cr.
Transfer to Capital reserve difference = Rs. 800
Share forfeited amount 400 × 3 = Rs. 1200 Cr.
Share forfeited on reissue 400 × 1 = Rs. –400 Cr.
Transfer to Capital reserve difference = Rs. 800
Free Test
| FREE | Start Free Test |
Community Answer
MNO Ltd. forfeited 1,000 shares of Rs. 10 each on which shareholders h...
Explanation:
To understand the gain on reissue of shares and transfer to Capital reserve, we need to calculate the following:
1. Amount forfeited
2. Amount received on reissue
3. Gain on reissue
Let's calculate each of these steps in detail:
1. Amount forfeited:
The company forfeited 1,000 shares of Rs. 10 each on which shareholders had paid only application money of Rs. 3 per share.
Amount forfeited = Number of shares forfeited x Face value per share - Amount paid per share
= 1,000 x Rs. 10 - Rs. 3
= Rs. 10,000 - Rs. 3,000
= Rs. 7,000
2. Amount received on reissue:
Out of the forfeited shares, 400 equity shares were reissued as fully paid for Rs. 9 per share.
Amount received on reissue = Number of shares reissued x Amount received per share
= 400 x Rs. 9
= Rs. 3,600
3. Gain on reissue:
The gain on reissue is the difference between the amount forfeited and the amount received on reissue.
Gain on reissue = Amount received on reissue - Amount forfeited
= Rs. 3,600 - Rs. 7,000
= -Rs. 3,400
Since the gain on reissue is a loss of Rs. 3,400, it cannot be transferred to the Capital reserve. Therefore, the correct answer is not among the options provided.
To understand the gain on reissue of shares and transfer to Capital reserve, we need to calculate the following:
1. Amount forfeited
2. Amount received on reissue
3. Gain on reissue
Let's calculate each of these steps in detail:
1. Amount forfeited:
The company forfeited 1,000 shares of Rs. 10 each on which shareholders had paid only application money of Rs. 3 per share.
Amount forfeited = Number of shares forfeited x Face value per share - Amount paid per share
= 1,000 x Rs. 10 - Rs. 3
= Rs. 10,000 - Rs. 3,000
= Rs. 7,000
2. Amount received on reissue:
Out of the forfeited shares, 400 equity shares were reissued as fully paid for Rs. 9 per share.
Amount received on reissue = Number of shares reissued x Amount received per share
= 400 x Rs. 9
= Rs. 3,600
3. Gain on reissue:
The gain on reissue is the difference between the amount forfeited and the amount received on reissue.
Gain on reissue = Amount received on reissue - Amount forfeited
= Rs. 3,600 - Rs. 7,000
= -Rs. 3,400
Since the gain on reissue is a loss of Rs. 3,400, it cannot be transferred to the Capital reserve. Therefore, the correct answer is not among the options provided.
|
Explore Courses for Humanities/Arts exam
|
|
Similar Humanities/Arts Doubts
Top Courses for Humanities/ArtsView all
MNO Ltd. forfeited 1,000 shares of Rs. 10 each on which shareholders had paid only application money of Rs. 3 per share. Out of these, 400 equity shares were reissued as fully paid for Rs. 9 per share. The gain on reissue of shares transferred to Capital reserve is:a)Rs. 3,000b)Rs. 800c)Rs. 1,200d)Rs. 1,000Correct answer is option 'B'. Can you explain this answer?
Question Description
MNO Ltd. forfeited 1,000 shares of Rs. 10 each on which shareholders had paid only application money of Rs. 3 per share. Out of these, 400 equity shares were reissued as fully paid for Rs. 9 per share. The gain on reissue of shares transferred to Capital reserve is:a)Rs. 3,000b)Rs. 800c)Rs. 1,200d)Rs. 1,000Correct answer is option 'B'. Can you explain this answer? for Humanities/Arts 2025 is part of Humanities/Arts preparation. The Question and answers have been prepared according to the Humanities/Arts exam syllabus. Information about MNO Ltd. forfeited 1,000 shares of Rs. 10 each on which shareholders had paid only application money of Rs. 3 per share. Out of these, 400 equity shares were reissued as fully paid for Rs. 9 per share. The gain on reissue of shares transferred to Capital reserve is:a)Rs. 3,000b)Rs. 800c)Rs. 1,200d)Rs. 1,000Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for Humanities/Arts 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for MNO Ltd. forfeited 1,000 shares of Rs. 10 each on which shareholders had paid only application money of Rs. 3 per share. Out of these, 400 equity shares were reissued as fully paid for Rs. 9 per share. The gain on reissue of shares transferred to Capital reserve is:a)Rs. 3,000b)Rs. 800c)Rs. 1,200d)Rs. 1,000Correct answer is option 'B'. Can you explain this answer?.
MNO Ltd. forfeited 1,000 shares of Rs. 10 each on which shareholders had paid only application money of Rs. 3 per share. Out of these, 400 equity shares were reissued as fully paid for Rs. 9 per share. The gain on reissue of shares transferred to Capital reserve is:a)Rs. 3,000b)Rs. 800c)Rs. 1,200d)Rs. 1,000Correct answer is option 'B'. Can you explain this answer? for Humanities/Arts 2025 is part of Humanities/Arts preparation. The Question and answers have been prepared according to the Humanities/Arts exam syllabus. Information about MNO Ltd. forfeited 1,000 shares of Rs. 10 each on which shareholders had paid only application money of Rs. 3 per share. Out of these, 400 equity shares were reissued as fully paid for Rs. 9 per share. The gain on reissue of shares transferred to Capital reserve is:a)Rs. 3,000b)Rs. 800c)Rs. 1,200d)Rs. 1,000Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for Humanities/Arts 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for MNO Ltd. forfeited 1,000 shares of Rs. 10 each on which shareholders had paid only application money of Rs. 3 per share. Out of these, 400 equity shares were reissued as fully paid for Rs. 9 per share. The gain on reissue of shares transferred to Capital reserve is:a)Rs. 3,000b)Rs. 800c)Rs. 1,200d)Rs. 1,000Correct answer is option 'B'. Can you explain this answer?.
Solutions for MNO Ltd. forfeited 1,000 shares of Rs. 10 each on which shareholders had paid only application money of Rs. 3 per share. Out of these, 400 equity shares were reissued as fully paid for Rs. 9 per share. The gain on reissue of shares transferred to Capital reserve is:a)Rs. 3,000b)Rs. 800c)Rs. 1,200d)Rs. 1,000Correct answer is option 'B'. Can you explain this answer? in English & in Hindi are available as part of our courses for Humanities/Arts.
Download more important topics, notes, lectures and mock test series for Humanities/Arts Exam by signing up for free.
Here you can find the meaning of MNO Ltd. forfeited 1,000 shares of Rs. 10 each on which shareholders had paid only application money of Rs. 3 per share. Out of these, 400 equity shares were reissued as fully paid for Rs. 9 per share. The gain on reissue of shares transferred to Capital reserve is:a)Rs. 3,000b)Rs. 800c)Rs. 1,200d)Rs. 1,000Correct answer is option 'B'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of
MNO Ltd. forfeited 1,000 shares of Rs. 10 each on which shareholders had paid only application money of Rs. 3 per share. Out of these, 400 equity shares were reissued as fully paid for Rs. 9 per share. The gain on reissue of shares transferred to Capital reserve is:a)Rs. 3,000b)Rs. 800c)Rs. 1,200d)Rs. 1,000Correct answer is option 'B'. Can you explain this answer?, a detailed solution for MNO Ltd. forfeited 1,000 shares of Rs. 10 each on which shareholders had paid only application money of Rs. 3 per share. Out of these, 400 equity shares were reissued as fully paid for Rs. 9 per share. The gain on reissue of shares transferred to Capital reserve is:a)Rs. 3,000b)Rs. 800c)Rs. 1,200d)Rs. 1,000Correct answer is option 'B'. Can you explain this answer? has been provided alongside types of MNO Ltd. forfeited 1,000 shares of Rs. 10 each on which shareholders had paid only application money of Rs. 3 per share. Out of these, 400 equity shares were reissued as fully paid for Rs. 9 per share. The gain on reissue of shares transferred to Capital reserve is:a)Rs. 3,000b)Rs. 800c)Rs. 1,200d)Rs. 1,000Correct answer is option 'B'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice MNO Ltd. forfeited 1,000 shares of Rs. 10 each on which shareholders had paid only application money of Rs. 3 per share. Out of these, 400 equity shares were reissued as fully paid for Rs. 9 per share. The gain on reissue of shares transferred to Capital reserve is:a)Rs. 3,000b)Rs. 800c)Rs. 1,200d)Rs. 1,000Correct answer is option 'B'. Can you explain this answer? tests, examples and also practice Humanities/Arts tests.
|
|
Explore Courses for Humanities/Arts exam
|
|
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
|
© EduRev
|
Education Revolution
|
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup