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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:

Solution

✅ Correct Option: 2

Forfeited shares = 400 shares × ₹ 10 (final call) = ₹ 4,000.

Reissued shares = 400 shares × ₹ 45 = ₹ 18,000.

Amount transferred to capital reserve = Reissue amount - Forfeited amount = ₹ 18,000 - ₹ 4,000 = ₹ 14,000.

Answer: ₹ 14,000.

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