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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


Team Careers360 7th Jan, 2024
Answer (1)
Team Careers360 20th Jan, 2024

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.

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