Question : Alok Ltd. forfeited 300 Equity Shares of Rs. 10 each, fully called-up, held by Ram for non-payment of allotment money of Rs. 3 per equity share and first and final call money of Rs. 4 per equity share. Out of these, 250 shares were reissued to Shyam for a total payment of Rs. 2,000. What is the amount to be transferred to the Capital Reserve Account?
Option 1: Rs. 300
Option 2: Rs. 250
Option 3: Rs. 150
Option 4: Rs. 400
Correct Answer: Rs. 250
Solution :
Answer = Rs. 250
JOURNAL OF ALOK LTD.
Date
Particulars
L.F.
Dr.W
Cr. ( Rs.)
Share Capital A/c (300 x Rs. 10) ...Dr.
3,000
To Forfeited Shares A/c (300 x Rs. 3)
To Shares Allotment A/c (300 x Rs. 3)
To Shares First and Final Call A/c (300 x Rs. 4)
(300 shares forfeited for non-payment of allotment and first and final call)
900
1,200
Bank A/c (250 x Rs. 8) ...Dr.
Forfeited Shares A/c (250 x Rs. 2) ...Dr.
2,000
500
To Share Capital A/c (250 x Rs. 10)
(250 forfeited shares reissued for Rs. 8 per share)
2,500
Forfeited Shares A/c (250 x Rs. 1) ...Dr.
250
To Capital Reserve A/c (250 x Rs. 1) (Transfer of gain on reissue) (WN)
Question : Alok Ltd. forfeited 300 Equity Shares of Rs. 10 each, fully called-up, held by Ram for non-payment of allotment money of Rs. 3 per equity share and first and final call money of Rs. 4 per equity share. Out of these, 250 shares were reissued to Shyam for a total
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