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KLB Ltd. forfeited 3,000 shares of ₹ 10 each, ₹ 8 per share called up for non-payment of the first call of ₹ 2 per share. All these shares were reissued at ₹ 7 per share, ₹ 8 paid up. The amount transferred to the Capital Reserve Account will be:
Options:

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Forfeited amounts are first used to cover losses on reissued shares. Any remaining balance is transferred to the Capital Reserve Account.
Updated On: Jan 13, 2026
  • ₹ 18,000
  • ₹ 24,000
  • ₹ 15,000
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The Correct Option is C

Solution and Explanation

1. Forfeiture of 3,000 Shares: - Amount called per share: ₹ 8 - Unpaid amount per share (First call): ₹ 2 - Amount received per share before forfeiture: ₹ 6 (₹ 8 - ₹ 2) - Total forfeited amount: \[ \text{Forfeiture Amount} = 3,000 \times ₹ 6 = ₹ 18,000 \] 2. Reissue of 3,000 Shares: - Reissue price per share: ₹ 7 - Paid-up value per share: ₹ 8 - Total amount received on reissue: \[ \text{Reissue Amount} = 3,000 \times ₹ 7 = ₹ 21,000 \] 3. Nominal Value of Reissued Shares: - Nominal value per share: ₹ 8 - Total nominal value: \[ \text{Nominal Value} = 3,000 \times ₹ 8 = ₹ 24,000 \] 4. Amount Required to Make Shares Fully Paid: - This is the difference between the nominal value and the reissue amount. \[ \text{Required Amount} = \text{Nominal Value} - \text{Reissue Amount} \] \[ \text{Required Amount} = ₹ 24,000 - ₹ 21,000 = ₹ 3,000 \] 5. Forfeited Amount Transferred to Capital Reserve: - Total forfeited amount: ₹ 18,000 - Forfeited amount utilized for making shares fully paid: ₹ 3,000 - Remaining forfeited amount transferred to Capital Reserve: \[ \text{Capital Reserve} = ₹ 18,000 - ₹ 3,000 = ₹ 15,000 \] --- Final Answer: The amount credited to the Capital Reserve Account is ₹ 15,000.
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