Accountancyyyyy

782 views 2 replies
plz explain.......
 
Rama Ltd. forfeited 800shares of Anil of rs.10 each fully called up for non-payment of final 
call of rs.2 per share and reissue to Ankit as fully paid up for rs. 10 per share.Amount
transferred to capital reserve will be
 
a)3200 b)4600 c)6400 d)8000
Replies (2)

Capital Reserver would be 6400 being the profit earned on forfeited share 

You have already received Rs 8 on 800 shares i.e. 6400.

 

If you have re-issued at discount, the difference of Face value and paid value will be adjusted from the Rs. 6400 and balance capital reserve.

 

however in present, you have re-issued at fully paid up. i.e. entire amount already forfeited is your gain so Rs. 6400 is your capital reserve. 

 

Enjoy with Rs. 6400 and hope it would satisfy your query

 

For any query, pls call 9910993376 or 9810993376

share final call amt already posted in books of accounts is 800*2=1600 

but this amount is not yet received now bcz of forfeiture so treated as loss for under standing

reissued amt is 800*10=8000.

capital resrve(profit on forfeiture) is AMOUNT ON REISSUE-AMT NOT RECEIVED  IF ANY AFTER FORFEITURE i.e call money or any thing

8000-1600=6400.

 

 

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