ExamVeda
Login
Home

A B Co Ltd forfeited 20 shares of Rs 10 each...

This question belongs to Commerce Accounting
Accounting
?

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:

Answer & Solution
Correct Answer: Option A
Let's discuss the solution. Join the discussion
Examveda
Question posted by Examveda
Community

Join the Discussion

2 Comments
Fizza Iftikhar
Fizza Iftikhar 7 months ago
Capital Reserve=(Paid per share−Discount)×Reissued shares
(5−4)×15=15
BHUPINDER KAUR
BHUPINDER KAUR 2 years ago
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
Keep Learning

Related Questions on Accounting

Accounting provides information on
A. Cost and income for managers B. Company's tax liability for a particular year C. Financial conditions of an institutions D. All of the above
The long term assets that have no physical existence but are rights that have value is known as
A. Current assets B. Fixed assets C. Intangible assets D. Investments
The assets that can be converted into cash within a short period (i.e. 1 year or less) are known as
A. Current assets B. Fixed assets C. Intangible assets D. Investments
Patents, Copyrights and Trademarks are
A. Current assets B. Fixed assets C. Intangible assets D. Investments
More Related Questions on Accounting