Multiple choice

R. Ltd. reissued 2, 000 shares, which were forfeited by crediting Share forfeiture account by Rs. 3, 000. These shares were reissued at Rs. 9 per share. The amount to be transferred to capital reserve account will be

  1. Rs. 3, 000

  2. Rs. 2, 000

  3. Rs. 1, 000

  4. nil
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

 Assuming face value of shares =Rs 10 per share Since the shares are re-issued at Rs 9 per share Amount to be transferred to Share Capital Account out of Share Forefeiture A/c = Rs 1*2000 shares= Rs 2000 Balance amount remaing in Share forefeiture account is to be transferred to Capital reserve accounti.e Rs (3000-2000)=Rs 1000

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