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Mr.Bajaj who was the holder of 200 equity shares of Rs.100 each of Canny Ltd., on which only Rs.75 per share has been called up, couldn't pay his dues on allotment and first call each at Rs.25 per share. The director forfeited the above share and reissued 150 of such share to Mr.Birla at Rs.65 per share paid up as Rs.75 per share. The amount to be transferred to capital reserve account will be (a)Rs.1500 (b)Rs.2250 (c)Rs.2750 (d)Rs.3250?
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Mr.Bajaj who was the holder of 200 equity shares of Rs.100 each of Can...
Calculation of Amount to be Transferred to Capital Reserve Account

Forfeiture of Shares:

- Mr. Bajaj held 200 equity shares of Rs.100 each of Canny Ltd.
- Only Rs.75 per share has been called up, and Mr. Bajaj couldn't pay his dues on allotment and first call each at Rs.25 per share.
- As a result, the director forfeited the above share.

Reissue of Shares:

- The director reissued 150 of such shares to Mr. Birla at Rs.65 per share.
- The paid-up value of each share is Rs.75 per share.

Amount to be Transferred to Capital Reserve Account:

- The forfeited shares were originally issued at Rs.100 per share, but only Rs.75 per share was called up.
- Therefore, the amount forfeited per share is Rs.25 per share (Rs.100 - Rs.75).
- The total amount forfeited is Rs.5,000 (Rs.25 x 200).
- The reissued shares were issued at Rs.65 per share, but the paid-up value is Rs.75 per share.
- Therefore, the amount transferred to capital reserve account is Rs.1,500 (Rs.10 x 150).

Answer: (a) Rs.1500
Community Answer
Mr.Bajaj who was the holder of 200 equity shares of Rs.100 each of Can...
Equity share capital a/c             Dr.  15,000
         To calls in arrears a/c                           10,000
         To Share forfeiture a/c                            5,000
[Being 200 shares of Mr. Bajaj forfeited
for non-payment allotment and first call
each @Rs.25 per share]

Bank a/c                                    Dr.  9,750
Share forfeiture a/c                    Dr. 1,500
          To equity share capital a/c                   11,250
[Being 150 shares reissued @Rs.65 per 
share, Rs.75 paid up]

Share forfeiture a/c                    Dr.2,250
          To Capital Reserve a/c                           2,250
[Being gain on reissue of forfeited
shares transferred to capital reserve]

WORKING NOTES:-
Calculation of amount to be transferred to capital reserve:-
  Bajaj has paid Rs.5,000 and the Directors of the company have reissued 150 shares out of  200. so,

Bajaj =  5,000*150/200    
         =3,750

Share forfeiture Cr.                = Rs.3,750
(-)Share forfeiture Dr.            = Rs.1,500

Capital Reserve                    = Rs.2,250

Hence amount to be transferred to capital reserve is Rs.2,250.
Therefore, option (b)2,250 is correct
      
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Mr.Bajaj who was the holder of 200 equity shares of Rs.100 each of Canny Ltd., on which only Rs.75 per share has been called up, couldn't pay his dues on allotment and first call each at Rs.25 per share. The director forfeited the above share and reissued 150 of such share to Mr.Birla at Rs.65 per share paid up as Rs.75 per share. The amount to be transferred to capital reserve account will be (a)Rs.1500 (b)Rs.2250 (c)Rs.2750 (d)Rs.3250?
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Mr.Bajaj who was the holder of 200 equity shares of Rs.100 each of Canny Ltd., on which only Rs.75 per share has been called up, couldn't pay his dues on allotment and first call each at Rs.25 per share. The director forfeited the above share and reissued 150 of such share to Mr.Birla at Rs.65 per share paid up as Rs.75 per share. The amount to be transferred to capital reserve account will be (a)Rs.1500 (b)Rs.2250 (c)Rs.2750 (d)Rs.3250? 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 Mr.Bajaj who was the holder of 200 equity shares of Rs.100 each of Canny Ltd., on which only Rs.75 per share has been called up, couldn't pay his dues on allotment and first call each at Rs.25 per share. The director forfeited the above share and reissued 150 of such share to Mr.Birla at Rs.65 per share paid up as Rs.75 per share. The amount to be transferred to capital reserve account will be (a)Rs.1500 (b)Rs.2250 (c)Rs.2750 (d)Rs.3250? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Mr.Bajaj who was the holder of 200 equity shares of Rs.100 each of Canny Ltd., on which only Rs.75 per share has been called up, couldn't pay his dues on allotment and first call each at Rs.25 per share. The director forfeited the above share and reissued 150 of such share to Mr.Birla at Rs.65 per share paid up as Rs.75 per share. The amount to be transferred to capital reserve account will be (a)Rs.1500 (b)Rs.2250 (c)Rs.2750 (d)Rs.3250?.
Solutions for Mr.Bajaj who was the holder of 200 equity shares of Rs.100 each of Canny Ltd., on which only Rs.75 per share has been called up, couldn't pay his dues on allotment and first call each at Rs.25 per share. The director forfeited the above share and reissued 150 of such share to Mr.Birla at Rs.65 per share paid up as Rs.75 per share. The amount to be transferred to capital reserve account will be (a)Rs.1500 (b)Rs.2250 (c)Rs.2750 (d)Rs.3250? 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.
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