MNO Ltd. forfeited 1,000 shares of Rs. 10 each on which shareholders had paid only application money of Rs. 3 per share. Out of these, 400 equity shar - Accountancy MCQ CUET Accountancy 2022 20 July Shift 1 2026 | ExamTest.live

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MNO Ltd. forfeited 1,000 shares of Rs. 10 each on which shareholders had paid only application money of Rs. 3 per share. Out of these, 400 equity shares were reissued as fully paid for Rs. 9 per share. The gain on reissue of shares transferred to Capital reserve is:

Solution & Step-by-step Explanation

Amount forfeited per share = Rs. 3.Amount forfeited for 400 shares reissued = 400 \times 3 = 1, 200 .Loss on reissue per share = Rs. 10 - 9 = Rs. 1 .Total loss on reissue for 400 shares = 400 \times 1 = 400 .Gain transferred to Capital Reserve = Amount forfeited - Loss on reissue = 1, 200 - 400 = Rs. 800 .

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MNO Ltd. forfeited 1,000 shares of Rs. 10 each on which shareholders had paid only application money of Rs. 3 per share. Out of these, 400 equity shares were reissued as fully paid for Rs. 9 per share. The gain on reissue of shares transferred to Capital reserve is:

Rs. 3,000

Rs. 800

Rs. 1,200

Rs. 1,000

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