Company Accounts

Share Capital

Medium

common

A share of Rs. 100 issued at Rs. 110 on which Rs. 70 (including premium) has been received is forfeited. What is the amount per share that will be transferred to capital reserve if share is reissued at Rs. 70 fully paid-up?

Rs. 10

Rs. 20

Rs. 30

Rs. 40

✅ Correct Option: 3

Of $Rs.\,70$ received, $Rs.\,10$ is premium, so amount received towards capital $= Rs.\,60$ , which is credited to Share Forfeiture A/c. On reissue at $Rs.\,70$ fully paid, discount of $100 - 70 = Rs.\,30$ is set off from forfeiture. Balance transferred to Capital Reserve $= 60 - 30 = Rs.\,30$ per share.

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A share of Rs. 100 issued at Rs. 110 on which Rs. 70 (including premium) has been received is forfeited. What is the amount per share that will be transferred to capital reserve if share is reissued at Rs. 70 fully paid-up?

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