CA Foundation Exam  >  CA Foundation Questions  >  Jadu Ltd. issued 2,000 shares, which were for... Start Learning for Free
Jadu Ltd. issued 2,000 shares, which were forfeited by crediting Share forfeiture account by Rs. 3,000. These shares were issued Rs. 9 per share. The amount to be transferred to Capital Reserve account will be
  • a)
    Rs. 3,000
  • b)
    Rs. 2,000
  • c)
    Rs. 1,000
  • d)
    Nil
Correct answer is option 'C'. Can you explain this answer?
Verified Answer
Jadu Ltd. issued 2,000 shares, which were forfeited by crediting Share...
The solution is “Profit on forfeiture = 3000 - Loss on reissue 1000 = Rs. 2000 transferred to Capital Reserve”.
How the loss on reissue became 1000( Rs 1 * no. of shares; no. of shares aint given) 
View all questions of this test
Most Upvoted Answer
Jadu Ltd. issued 2,000 shares, which were forfeited by crediting Share...
Bank a/c                         Dr.18,000
Share forfeiture a/c        Dr.   2,000
            To Equity Share Capital a/c        20,000
[Being 2,000 shares reissued @ Rs.9
per share fully paid up]

Share forfeiture a/c       Dr. 1,000
             To Capital Reserve a/c       1,000
[Being gain on reissue of forfeited
shares transferred to capital reserve]

WORKING NOTES:-
Share forfeiture Cr.           = Rs.3,000
(-)Share forfeiture Dr.        = Rs.2,000
            Capital reserve      = Rs.1,000

Hence amount transferred to capital reserve is Rs.1,000. Therefore option (C) 1,000 is correct.
Free Test
Community Answer
Jadu Ltd. issued 2,000 shares, which were forfeited by crediting Share...
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)
Explore Courses for CA Foundation exam
Jadu Ltd. issued 2,000 shares, which were forfeited by crediting Share forfeiture account by Rs. 3,000. These shares were issued Rs. 9 per share. The amount to be transferred to Capital Reserve account will bea)Rs. 3,000b)Rs. 2,000c)Rs. 1,000d)NilCorrect answer is option 'C'. Can you explain this answer?
Question Description
Jadu Ltd. issued 2,000 shares, which were forfeited by crediting Share forfeiture account by Rs. 3,000. These shares were issued Rs. 9 per share. The amount to be transferred to Capital Reserve account will bea)Rs. 3,000b)Rs. 2,000c)Rs. 1,000d)NilCorrect answer is option '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 Jadu Ltd. issued 2,000 shares, which were forfeited by crediting Share forfeiture account by Rs. 3,000. These shares were issued Rs. 9 per share. The amount to be transferred to Capital Reserve account will bea)Rs. 3,000b)Rs. 2,000c)Rs. 1,000d)NilCorrect answer is option '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 Jadu Ltd. issued 2,000 shares, which were forfeited by crediting Share forfeiture account by Rs. 3,000. These shares were issued Rs. 9 per share. The amount to be transferred to Capital Reserve account will bea)Rs. 3,000b)Rs. 2,000c)Rs. 1,000d)NilCorrect answer is option 'C'. Can you explain this answer?.
Solutions for Jadu Ltd. issued 2,000 shares, which were forfeited by crediting Share forfeiture account by Rs. 3,000. These shares were issued Rs. 9 per share. The amount to be transferred to Capital Reserve account will bea)Rs. 3,000b)Rs. 2,000c)Rs. 1,000d)NilCorrect answer is option 'C'. 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 Jadu Ltd. issued 2,000 shares, which were forfeited by crediting Share forfeiture account by Rs. 3,000. These shares were issued Rs. 9 per share. The amount to be transferred to Capital Reserve account will bea)Rs. 3,000b)Rs. 2,000c)Rs. 1,000d)NilCorrect answer is option 'C'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of Jadu Ltd. issued 2,000 shares, which were forfeited by crediting Share forfeiture account by Rs. 3,000. These shares were issued Rs. 9 per share. The amount to be transferred to Capital Reserve account will bea)Rs. 3,000b)Rs. 2,000c)Rs. 1,000d)NilCorrect answer is option 'C'. Can you explain this answer?, a detailed solution for Jadu Ltd. issued 2,000 shares, which were forfeited by crediting Share forfeiture account by Rs. 3,000. These shares were issued Rs. 9 per share. The amount to be transferred to Capital Reserve account will bea)Rs. 3,000b)Rs. 2,000c)Rs. 1,000d)NilCorrect answer is option 'C'. Can you explain this answer? has been provided alongside types of Jadu Ltd. issued 2,000 shares, which were forfeited by crediting Share forfeiture account by Rs. 3,000. These shares were issued Rs. 9 per share. The amount to be transferred to Capital Reserve account will bea)Rs. 3,000b)Rs. 2,000c)Rs. 1,000d)NilCorrect answer is option 'C'. Can you explain this answer? theory, EduRev gives you an ample number of questions to practice Jadu Ltd. issued 2,000 shares, which were forfeited by crediting Share forfeiture account by Rs. 3,000. These shares were issued Rs. 9 per share. The amount to be transferred to Capital Reserve account will bea)Rs. 3,000b)Rs. 2,000c)Rs. 1,000d)NilCorrect answer is option 'C'. Can you explain this answer? tests, examples and also practice CA Foundation tests.
Explore Courses for CA Foundation exam

Top Courses for CA Foundation

Explore Courses
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
10M+ students study on EduRev