Multiple choice

A Ltd. issued 3,000 equity shares of Rs. 10 each at a discount of 10%. On these shares, payments are to be made as follows: Rs. 2 on application, Rs.3 on allotment and Rs. 5 on first and final calls. Anil, who is a holder of 800 shares has not paid the first and final call, hence, his share have been forfeited and have been reissued at a discount of 10%. What is the amount of Forfeited Shares A/c transferred to Capital Reserve A/c after re-issue of forfeited shares?

  1. Rs. 4,000

  2. Rs. 800

  3. Rs. 2,400

  4. Rs. 3,200
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

The amount of Forfeited Shares A/c is transferred to Capital Reserve after re-issue of shares, i.e. 4,000 - 800 = 3,200.

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