200 shares of Rs. 100 each issued at a premium of Rs.10 were forfeited for the non-payment of allotment money of Rs. 60 (including premium) per share. The first and final call of Rs. 20 per share on these shares were not made. The forfeited shares were reissued at Rs. 70 per share as fully paid-up. Capital reserve created after reissue will be:

Looking at the share issuance and forfeiture details:

Face Value per share = Rs. 100

Premium = Rs. 10

Allotment money (including premium) = Rs. 60

Final call not made = Rs. 20

The payment structure per share would be:

• Application money = Rs. 100 + Rs. 10 - Rs. 60 - Rs. 20 = Rs. 30 (paid)
• Allotment money = Rs. 60 (not paid - reason for forfeiture)
• Final call = Rs. 20 (not made)

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Amount paid before forfeiture = Rs. 30 per share

Total amount forfeited for 200 shares = Rs. 30 × 200 = Rs. 6,000

This Rs. 6,000 gets credited to Share Forfeiture Account.

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On Reissue:

The shares are reissued at Rs. 70 per share as fully paid-up (face value Rs. 100).

Discount on reissue per share = Rs. 100 - Rs. 70 = Rs. 30

Total discount on 200 shares = Rs. 30 × 200 = Rs. 6,000

This discount amount must be written off from Share Forfeiture Account.

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Capital Reserve is calculated as:

Capital Reserve = Amount Forfeited - Discount on Reissue

Capital Reserve = Rs. 6,000 - Rs. 6,000 = Zero

The entire forfeited amount gets utilized to absorb the discount on reissue, leaving no balance to be transferred to Capital Reserve.

Correct Option: 3 (Zero)