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J Ltd. reissued 2,000 shares which were forfeited by crediting share forfeiture account by Rs. 3,000. These shares were reissued at Rs. 9 Per share. The amount transferred to Capital Reserve will be:
- a)Rs. 3,000
- b)Rs. 2,000
- c)Rs. 1,000
- d)Nil
Correct answer is 'C'. Can you explain this answer?
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Verified Answer
J Ltd. reissued 2,000 shares which were forfeited by crediting share f...
Bank A/c Dr.(2000*9) 18,000
Share forfeiture A/c Dr. 2000
To Share Capital A/c (2000*10) 20,000
(Being forfeited shares re-issued)
Share Forfeiture A/c Dr. 1000
To Capital Reserve 1000
(balance in share forfeiture account transferred to capital reserve)
Most Upvoted Answer
J Ltd. reissued 2,000 shares which were forfeited by crediting share f...
Solution:
When shares are forfeited, the amount paid by the shareholder is credited to the share forfeiture account.
Given, the number of shares reissued = 2,000
Reissue price per share = Rs. 9
Amount credited to share forfeiture account = Rs. 3,000
The forfeited shares are reissued at a higher price than the forfeit price, and the excess amount received is transferred to the capital reserve account.
Calculation of excess amount received on reissue of shares:
Amount received on reissue of shares = 2,000 x Rs. 9 = Rs. 18,000
Less: Amount already credited to share forfeiture account = Rs. 3,000
Excess amount received on reissue of shares = Rs. 15,000
Hence, the amount transferred to the capital reserve account will be Rs. 1,000 (i.e., 1/15th of the excess amount received on reissue of shares).
When shares are forfeited, the amount paid by the shareholder is credited to the share forfeiture account.
Given, the number of shares reissued = 2,000
Reissue price per share = Rs. 9
Amount credited to share forfeiture account = Rs. 3,000
The forfeited shares are reissued at a higher price than the forfeit price, and the excess amount received is transferred to the capital reserve account.
Calculation of excess amount received on reissue of shares:
Amount received on reissue of shares = 2,000 x Rs. 9 = Rs. 18,000
Less: Amount already credited to share forfeiture account = Rs. 3,000
Excess amount received on reissue of shares = Rs. 15,000
Hence, the amount transferred to the capital reserve account will be Rs. 1,000 (i.e., 1/15th of the excess amount received on reissue of shares).
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Community Answer
J Ltd. reissued 2,000 shares which were forfeited by crediting share f...
J ltd. forfeited rs3000 shares but reissued only rs2000 shares. So,3000-2000=1000 will be transferred to capital reserve
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J Ltd. reissued 2,000 shares which were forfeited by crediting share forfeiture account by Rs. 3,000. These shares were reissued at Rs. 9 Per share. The amount transferred to Capital Reserve will be:a)Rs. 3,000b)Rs. 2,000c)Rs. 1,000d)NilCorrect answer is 'C'. Can you explain this answer?
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J Ltd. reissued 2,000 shares which were forfeited by crediting share forfeiture account by Rs. 3,000. These shares were reissued at Rs. 9 Per share. The amount transferred to Capital Reserve will be:a)Rs. 3,000b)Rs. 2,000c)Rs. 1,000d)NilCorrect answer is 'C'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about J Ltd. reissued 2,000 shares which were forfeited by crediting share forfeiture account by Rs. 3,000. These shares were reissued at Rs. 9 Per share. The amount transferred to Capital Reserve will be:a)Rs. 3,000b)Rs. 2,000c)Rs. 1,000d)NilCorrect answer is 'C'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for J Ltd. reissued 2,000 shares which were forfeited by crediting share forfeiture account by Rs. 3,000. These shares were reissued at Rs. 9 Per share. The amount transferred to Capital Reserve will be:a)Rs. 3,000b)Rs. 2,000c)Rs. 1,000d)NilCorrect answer is 'C'. Can you explain this answer?.
J Ltd. reissued 2,000 shares which were forfeited by crediting share forfeiture account by Rs. 3,000. These shares were reissued at Rs. 9 Per share. The amount transferred to Capital Reserve will be:a)Rs. 3,000b)Rs. 2,000c)Rs. 1,000d)NilCorrect answer is 'C'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about J Ltd. reissued 2,000 shares which were forfeited by crediting share forfeiture account by Rs. 3,000. These shares were reissued at Rs. 9 Per share. The amount transferred to Capital Reserve will be:a)Rs. 3,000b)Rs. 2,000c)Rs. 1,000d)NilCorrect answer is 'C'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for J Ltd. reissued 2,000 shares which were forfeited by crediting share forfeiture account by Rs. 3,000. These shares were reissued at Rs. 9 Per share. The amount transferred to Capital Reserve will be:a)Rs. 3,000b)Rs. 2,000c)Rs. 1,000d)NilCorrect answer is 'C'. Can you explain this answer?.
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