Case Study Information:Moonrise Co. is authorized with a Share Capital of ₹5,00,000. It issued 10,000 equity shares of ₹12 each (Face Value ₹10 + Premium ₹2).The money was payable as:₹4 on Application₹4 on Allotment (including premium of ₹2)₹4 on 1st and final callApplications were received for 12,000 shares and the directors decided to make a pro-rata allotment. Mr. Rashidi, an applicant for 120 shares, failed to pay the allotment and call money. Mr. Shantanu, a holder of 200 shares, failed to pay the call money. All these shares were forfeited. Out of the forfeited shares, 150 shares (including all of Rashidi's shares) were reissued at ₹8 per share.Question: The amount transferred to the Capital Reserve Account will be:

Let's calculate the amount forfeited on the reissued shares:Rashidi's shares: * Allotted = 100 shares. Total cash received from him via application = ₹480.This entire ₹480 is the forfeited amount for his 100 shares (since no premium was collected from him, no subtraction is required).All 100 of his shares are reissued.Shantanu's shares:Total reissued = 150 shares. Since 100 belong to Rashidi, the remaining $150-100=50$ shares belong to Shantanu.Shantanu held 200 shares and paid Application (₹4) + Allotment (₹4, where ₹2 is premium).Forfeited amount per share for Shantanu = Total received excluding premium = $₹4\text{ (Application)}+₹2\text{ (Allotment capital component)}=₹6\text{ per share}$.Forfeited amount for 50 reissued shares of Shantanu = $50\times ₹6=₹300$.Total Forfeited Amount for the 150 reissued shares:
$$\text{Total Forfeited}=₹480\text{ (Rashidi)}+₹300\text{ (Shantanu)}=₹780$$
Discount allowed on reissue:Reissue price = ₹8 per share (Paid up value assumed = ₹10).Discount per share = $10-8=₹2$.Total discount on 150 shares = $150\times ₹2=₹300$.Transfer to Capital Reserve:
$$\text{Capital Reserve}=\text{Total Forfeited on reissued shares}-\text{Discount on Reissue}$$
$$\text{Capital Reserve}=780-300=₹480$$