Question :
ABC Ltd. forfeited 150 Equity Shares of Rs. 10 each issued at a premium of Rs. 5 per share, for non-payment of allotment money of Rs. 8 per share (including premium of Rs. 5 per share), the first call of Rs. 2 per share and the final call of Rs. 3 per share. Out of these, 100 Equity Shares were reissued at Rs. 14 per share.
Question:- What is the amount transferred to the Capital Reserve Account?
Option 1: Rs. 300
Option 2: Rs. 200
Option 3: Rs. 700
Option 4: Nil
Correct Answer: Rs. 200
Solution : Answer = Rs. 200
|
Share Capital A/c (150 x Rs. 10) ...Dr. |
1,500 |
|
|
Securities Premium Reserve A/c (150 x Rs. 5) ...Dr. |
750 |
|
|
To Forfeited Shares A/c (150 x Rs. 2) |
300 |
|
|
To Shares Allotment A/c (150 x Rs. 8) |
1,200 |
|
|
To Shares First Call A/c (150 x Rs. 2) |
300 |
|
|
To Shares Second and Final Call A/c (150 x Rs. 3) |
(150 shares forfeited for non-payment of allotment and both the calls)
450
Bank A/c (100 x Rs. 14) ...Dr.
1,400
To Share Capital A/c (100 xT 10)
1,000
To Securities Premium Reserve A/c (100 x Rs. 4)
(Reissue of 100 of the forfeited shares @ Rs.14 per share)
400
Forfeited Shares A/c ...Dr.
To Capital Reserve A/c
(Gain on reissue of 100 shares transferred to Capital Reserve)
200
200
