To determine the amount transferred to the capital reserve upon share reissue, we must first examine the details of share forfeiture and reissue.
1. Initial Issuance Information:
Number of shares issued = 400
Nominal value per share = ₹50
Amount of the final call unpaid per share = ₹10
Aggregate unpaid amount = 400 shares × ₹10 = ₹4,000
2. Accounting for Forfeiture:
Upon forfeiture, the amount collected before reissue is calculated as (Original face value - Unpaid call amount) per share.
= ₹50 - ₹10 = ₹40 per share
Total amount collected for forfeited shares prior to reissue = 400 shares × ₹40 = ₹16,000
3. Reissue Specifics:
Price per share upon reissue = ₹45
Total proceeds from reissue = 400 shares × ₹45 = ₹18,000
4. Calculation of Capital Reserve:
Sum of amount collected before reissue and reissue proceeds = ₹16,000 + ₹18,000 = ₹34,000
Given that the shares are reissued as fully paid, the total nominal value of the reissued shares = 400 × ₹50 = ₹20,000.
The profit realized on reissue is the difference between the reissue proceeds and the nominal value.
Profit = ₹34,000 - ₹20,000 = ₹14,000
Consequently, the amount credited to the capital reserve is ₹14,000.