Forfeited shares

we have to find out forfeature amount 1st 200*25 = 5000

forfeature amount per share = 5000/200 = 25

loss on reissue of share (75-65)  = 10

                                                                  _____

                                                                   15

                                                                  _____

15*150 shares = 2250/-

Hi, Amount to be transferred to capital reserve is calculated as follows :

(Amopunt received from defaulting shareholder per share - discount allowed on reissue per share) x no. of shares reissued

= (25-10) * 150

= 2,250

Regards,

CA Shakuntala Chhangani

Total share s held is 200 of rs 100 each , 75 paid up. 
amt recieved by canny ltd on dis share is rs 25/ share ie 75 -25(allotmnt) -25(1st call)= 25
ie, canny ltd hs a capital profit of rs 25 per share wen dey r forfieted. ie, forfieted a/c will show a credit balance of 25*200= 5000 .
this can used to reissue dis shares on a discount. aftr issuin at discount the balance will b transferd to capital reserve.

in this problem only 150 shares are reissued . 
amt recieved by canny ltd on dese shares from the defaultin share holder is 150*25 =3750
discount allowed on reissue of dis shares is 150* 75-65= 1500

the balance ie 3750- 1500 = 2250 is trnsferd to capital reserve. 

cheers