Z Limited forfeited 200 fully called up shares of ₹10 each on which ₹1,300 had been received; later on these shares were reissued as fully paid up @ ₹9 per share. The amount to be transferred from share forfeited account
CS CSEET · Business Economics & Fundamentals of Accounting and Auditing · PYQS · June 2013
Z Limited forfeited 200 fully called up shares of ₹10 each on which ₹1,300 had been received; later on these shares were reissued as fully paid up @ ₹9 per share. The amount to be transferred from share forfeited account to capital reserve account will be —
Answer & Explanation:
Correct Answer: Option (C)
Correct answer: (C) ₹1,100. Capital reserve = forfeited amount 1,300 − reissue discount (200×1) = 1,100.
Topics: Fundamentals of Accounting
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