The Directors of Tivoli Plastics Ltd. resolved that 200 equity shares of Rs. 100 each be Forfeited for non-payment of the second and final call of Rs. - Accountancy MCQ CUET Accountancy 2022 20 Aug Shift 2 2026 | ExamTest.live

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The Directors of Tivoli Plastics Ltd. resolved that 200 equity shares of Rs. 100 each be Forfeited for non-payment of the second and final call of Rs. 30 per share. Out of these, 150 shares were reissued at Rs. 60 per share as fully paid-up. How much amount will be transferred to Capital Reserve Account?

Solution & Step-by-step Explanation

Amount forfeited per share = Face Value - Unpaid Call = 100 - 30 = Rs. 70 .Discount allowed on reissue per share = 100 - 60 = Rs. 40 .Profit on reissue per share = Amount forfeited per share - Discount on reissue = 70 - 40 = Rs. 30 .Total amount transferred to Capital Reserve = Number of shares reissued \times Profit per share $ = 150 \times 30 = Rs. 4, 500 $

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The Directors of Tivoli Plastics Ltd. resolved that 200 equity shares of Rs. 100 each be Forfeited for non-payment of the second and final call of Rs. 30 per share. Out of these, 150 shares were reissued at Rs. 60 per share as fully paid-up. How much amount will be transferred to Capital Reserve Account?

Rs. 10, 500

Rs. 4, 500

Rs. 6, 000

Rs. 8, 000

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