A, B, Co. Ltd. forfeited 20 shares of Rs. 10 each, Rs. 7 called up on which C had paid application and allotment money of Rs. 5 per share. Of these, 15 shares were reissued to D @Rs. 6 per share as fully paid-up for Capital Reserve account would be:
A. Rs. 15
B. Rs. 20
C. Rs. 75
D. Rs. 100
Answer: Option A
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Profit on 20 Shares (15 x 5) = Rs. 75
Less:- Loss on Reissue (15 x 4) = Rs. 60
Amount to be transferred to Capital Reserve = Rs. 15