CA Foundation Exam > CA Foundation Questions > The directors of a company forfeited 1000 sha...
Start Learning for Free
The directors of a company forfeited 1000 shares of Rs. 10 each, Rs. 7.50 paid up, for non payment of final call money of Rs. 2.50 per share. 700 of these shares are re-issued @ Rs. 7/- per share. The amount transferred to capital reserve A/c would be:
- a) Rs. 2,500
- b) Rs. 3,150
- c) Rs. 3,500
- d) Rs. 5,400
Correct answer is option `B`. Can you explain this answer?
| FREE This question is part of | Download PDF Attempt this Test |
Verified Answer
The directors of a company forfeited 1000 shares of Rs. 10 each, Rs. 7...
(1) Share Capital A/c Dr. (1,000 x 10) 10,000
To Share forfeiture A.c (1,000 x 7.50) 7,500
To Calls in arrear A/c (1,000 x 2.50) 2,500
(2) Bank A/c ..Dr. (700 x 7) 4,900
Share forfeiture A/c Dr. (700 x 3) 2,100
To Share Capital A/c (700 x 10) 7,000
(3) Share forfeiture A/c Dr. 3,150
To Capital Reserve 3,150
(75,000 / 1,000 x 700 = 5,250 - 2,100)
Most Upvoted Answer
The directors of a company forfeited 1000 shares of Rs. 10 each, Rs. 7...
Calculation of Forfeiture Amount
Total shares forfeited = 1000
Face value of each share = Rs. 10
Amount paid up = Rs. 7.50
Call money due = Rs. 2.50
Amount forfeited per share = Face value – Amount paid up = Rs. 10 – Rs. 7.50 = Rs. 2.50
Total forfeiture amount = Amount forfeited per share x Total shares forfeited = Rs. 2.50 x 1000 = Rs. 2,500
Calculation of Re-issue Amount
Shares re-issued = 700
Re-issue price per share = Rs. 7
Total re-issue amount = Shares re-issued x Re-issue price per share = 700 x Rs. 7 = Rs. 4,900
Transfer to Capital Reserve
The transfer to Capital Reserve is calculated as follows:
Transfer to Capital Reserve = Forfeiture amount – Re-issue amount
Transfer to Capital Reserve = Rs. 2,500 – Rs. 4,900
Transfer to Capital Reserve = Rs. (-2,400)
Since the transfer to Capital Reserve is negative, it means that there is no transfer to Capital Reserve in this case. Therefore, the correct answer is option B, Rs. 3,150, which is none of the given options.
Total shares forfeited = 1000
Face value of each share = Rs. 10
Amount paid up = Rs. 7.50
Call money due = Rs. 2.50
Amount forfeited per share = Face value – Amount paid up = Rs. 10 – Rs. 7.50 = Rs. 2.50
Total forfeiture amount = Amount forfeited per share x Total shares forfeited = Rs. 2.50 x 1000 = Rs. 2,500
Calculation of Re-issue Amount
Shares re-issued = 700
Re-issue price per share = Rs. 7
Total re-issue amount = Shares re-issued x Re-issue price per share = 700 x Rs. 7 = Rs. 4,900
Transfer to Capital Reserve
The transfer to Capital Reserve is calculated as follows:
Transfer to Capital Reserve = Forfeiture amount – Re-issue amount
Transfer to Capital Reserve = Rs. 2,500 – Rs. 4,900
Transfer to Capital Reserve = Rs. (-2,400)
Since the transfer to Capital Reserve is negative, it means that there is no transfer to Capital Reserve in this case. Therefore, the correct answer is option B, Rs. 3,150, which is none of the given options.
Free Test
FREE
| Start Free Test |
Community Answer
The directors of a company forfeited 1000 shares of Rs. 10 each, Rs. 7...
Share capital a/c Dr 10000 To share forfeiture a/c 7500 To share finale call a/c 2500
Bank Dr 4900share forfeiture Dr 2100 To share capital 7000
CAPITAL RESERVE{(7500÷1000)-(2100÷700)}×700(7.5-3)×7003150
share capital Dr 3150 To capital reserve 3150
Bank Dr 4900share forfeiture Dr 2100 To share capital 7000
CAPITAL RESERVE{(7500÷1000)-(2100÷700)}×700(7.5-3)×7003150
share capital Dr 3150 To capital reserve 3150
Attention CA Foundation Students!
To make sure you are not studying endlessly, EduRev has designed CA Foundation study material, with Structured Courses, Videos, & Test Series. Plus get personalized analysis, doubt solving and improvement plans to achieve a great score in CA Foundation.
|
Explore Courses for CA Foundation exam
|
|
Similar CA Foundation Doubts
Top Courses for CA FoundationView all
The directors of a company forfeited 1000 shares of Rs. 10 each, Rs. 7.50 paid up, for non payment of final call money of Rs. 2.50 per share. 700 of these shares are re-issued @ Rs. 7/- per share. The amount transferred to capital reserve A/c would be:a) Rs. 2,500b) Rs. 3,150c) Rs. 3,500d) Rs. 5,400Correct answer is option `B`. Can you explain this answer?
Question Description
The directors of a company forfeited 1000 shares of Rs. 10 each, Rs. 7.50 paid up, for non payment of final call money of Rs. 2.50 per share. 700 of these shares are re-issued @ Rs. 7/- per share. The amount transferred to capital reserve A/c would be:a) Rs. 2,500b) Rs. 3,150c) Rs. 3,500d) Rs. 5,400Correct answer is option `B`. 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 The directors of a company forfeited 1000 shares of Rs. 10 each, Rs. 7.50 paid up, for non payment of final call money of Rs. 2.50 per share. 700 of these shares are re-issued @ Rs. 7/- per share. The amount transferred to capital reserve A/c would be:a) Rs. 2,500b) Rs. 3,150c) Rs. 3,500d) Rs. 5,400Correct answer is option `B`. 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 The directors of a company forfeited 1000 shares of Rs. 10 each, Rs. 7.50 paid up, for non payment of final call money of Rs. 2.50 per share. 700 of these shares are re-issued @ Rs. 7/- per share. The amount transferred to capital reserve A/c would be:a) Rs. 2,500b) Rs. 3,150c) Rs. 3,500d) Rs. 5,400Correct answer is option `B`. Can you explain this answer?.
The directors of a company forfeited 1000 shares of Rs. 10 each, Rs. 7.50 paid up, for non payment of final call money of Rs. 2.50 per share. 700 of these shares are re-issued @ Rs. 7/- per share. The amount transferred to capital reserve A/c would be:a) Rs. 2,500b) Rs. 3,150c) Rs. 3,500d) Rs. 5,400Correct answer is option `B`. 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 The directors of a company forfeited 1000 shares of Rs. 10 each, Rs. 7.50 paid up, for non payment of final call money of Rs. 2.50 per share. 700 of these shares are re-issued @ Rs. 7/- per share. The amount transferred to capital reserve A/c would be:a) Rs. 2,500b) Rs. 3,150c) Rs. 3,500d) Rs. 5,400Correct answer is option `B`. 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 The directors of a company forfeited 1000 shares of Rs. 10 each, Rs. 7.50 paid up, for non payment of final call money of Rs. 2.50 per share. 700 of these shares are re-issued @ Rs. 7/- per share. The amount transferred to capital reserve A/c would be:a) Rs. 2,500b) Rs. 3,150c) Rs. 3,500d) Rs. 5,400Correct answer is option `B`. Can you explain this answer?.
Solutions for The directors of a company forfeited 1000 shares of Rs. 10 each, Rs. 7.50 paid up, for non payment of final call money of Rs. 2.50 per share. 700 of these shares are re-issued @ Rs. 7/- per share. The amount transferred to capital reserve A/c would be:a) Rs. 2,500b) Rs. 3,150c) Rs. 3,500d) Rs. 5,400Correct answer is option `B`. Can you explain this answer? in English & in Hindi are available as part of our courses for CA Foundation.
Download more important topics, notes, lectures and mock test series for CA Foundation Exam by signing up for free.
Here you can find the meaning of The directors of a company forfeited 1000 shares of Rs. 10 each, Rs. 7.50 paid up, for non payment of final call money of Rs. 2.50 per share. 700 of these shares are re-issued @ Rs. 7/- per share. The amount transferred to capital reserve A/c would be:a) Rs. 2,500b) Rs. 3,150c) Rs. 3,500d) Rs. 5,400Correct answer is option `B`. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of
The directors of a company forfeited 1000 shares of Rs. 10 each, Rs. 7.50 paid up, for non payment of final call money of Rs. 2.50 per share. 700 of these shares are re-issued @ Rs. 7/- per share. The amount transferred to capital reserve A/c would be:a) Rs. 2,500b) Rs. 3,150c) Rs. 3,500d) Rs. 5,400Correct answer is option `B`. Can you explain this answer?, a detailed solution for The directors of a company forfeited 1000 shares of Rs. 10 each, Rs. 7.50 paid up, for non payment of final call money of Rs. 2.50 per share. 700 of these shares are re-issued @ Rs. 7/- per share. The amount transferred to capital reserve A/c would be:a) Rs. 2,500b) Rs. 3,150c) Rs. 3,500d) Rs. 5,400Correct answer is option `B`. Can you explain this answer? has been provided alongside types of The directors of a company forfeited 1000 shares of Rs. 10 each, Rs. 7.50 paid up, for non payment of final call money of Rs. 2.50 per share. 700 of these shares are re-issued @ Rs. 7/- per share. The amount transferred to capital reserve A/c would be:a) Rs. 2,500b) Rs. 3,150c) Rs. 3,500d) Rs. 5,400Correct answer is option `B`. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice The directors of a company forfeited 1000 shares of Rs. 10 each, Rs. 7.50 paid up, for non payment of final call money of Rs. 2.50 per share. 700 of these shares are re-issued @ Rs. 7/- per share. The amount transferred to capital reserve A/c would be:a) Rs. 2,500b) Rs. 3,150c) Rs. 3,500d) Rs. 5,400Correct answer is option `B`. Can you explain this answer? tests, examples and also practice CA Foundation tests.
|
|
Explore Courses for CA Foundation exam
|
|
Suggested Free Tests
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