The directors of a company forfeited 400 equity shares of Rs. 10 each fully called up on which Rs. 1,600 had been paid. All the forfeited shares were - Accountancy MCQ CUET Accountancy 2022 20 Aug Shift 2 2026 | ExamTest.live

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The directors of a company forfeited 400 equity shares of Rs. 10 each fully called up on which Rs. 1, 600 had been paid. All the forfeited shares were reissued upon payment of Rs. 3, 000 . Calculate the amount transferred to Capital Reserve

Solution & Step-by-step Explanation

Amount forfeited = Rs. 1, 600 .Reissue value for 400 shares = Rs. 3, 000 .Face value of 400 shares = 400 \times 10 = Rs. 4, 000 .Discount on reissue = 4, 000 - 3, 000 = Rs. 1, 000 .Amount transferred to Capital Reserve = Amount Forfeited - Discount on Reissue $ = 1, 600 - 1, 000 = Rs. 600 $

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The directors of a company forfeited 400 equity shares of Rs. 10 each fully called up on which Rs. 1, 600 had been paid. All the forfeited shares were reissued upon payment of Rs. 3, 000 . Calculate the amount transferred to Capital Reserve

Rs. 1, 600

Rs. 600

Rs. 1, 400

Rs. 2, 400

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