Question
Accountancy Question on Accounting for Share and Debenture Capital
400 shares of ₹50 each issued at par were forfeited for non-payment of final call of ₹10 per share. These shares were reissued at ₹45 per share as fully paid-up. The amount transferred to capital reserve is
A
₹15,000
B
₹14,000
C
₹16,000
D
₹13,000
Answer
₹14,000
Explanation
Solution
The forfeited amount per share is ₹40 (₹50 - ₹10). For 400 shares, the total forfeited amount is ₹16,000. The shares were reissued at ₹45, causing a loss of ₹5 per share (₹50 - ₹45), totaling ₹2,000 loss. Capital Reserve = Total forfeited amount - Reissue loss = ₹16,000 - ₹2,000 = ₹14,000. Correct Answer: Option 2.