Question : A company forfeited 700 shares of Rs. 10 each, on which only Rs. 5 per share was paid. Of these 200 shares were re-issued at Rs. 9 per share. Amount from share forfeiture account to capital reserve will be transferred-
Option 1: Rs. 800
Option 2: Rs. 200
Option 3: Rs. 3,500
Option 4: Rs. 2,500
Correct Answer: Rs. 800
Solution : Answer = Rs. 800
Share forfeiture account is credited by Rs. 1,000 (Rs. 200 x 5). Share forfeiture account is debited by Rs. 200 (Rs. 200 x 1). The amount transferred to the capital reserve will be Rs. 800. Hence, the correct option is 1.
Question : 6000 shares of Rs. 100 each forfeited due to nonpayment of allotment of Rs. 40 per share and first & final call of Rs. 30 per share. Out of the forfeited shares, 4500 shares were reissued at Rs. 80 per share fully paid. Which of the following amount of share forfeiture
Question : Vibhuti Ltd. Forfeited 40 shares of Rs. 10 each, Rs. 8 called up, on which Jhanvi had paid application and allotment money of Rs. 5 per share, 15 shares were reissued to Parker as fully paid up for Rs. 6 per share.
What is the balance in the share Forfeiture Account
Question : A company forfeited 1,000 shares of Rs. 10 each fully called, on which Rs. 6,000 has been paid. Out of these, 800 shares were re-issued upon payment of Rs. 6,600. What is the amount to be transferred to the capital reserve?
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