Question

(i) Vishesh Ltd. forfeited 1,000 Equity Shares of Rs. 10 each issued at a premium of Rs. 2 per share for non-payment of allotment money of Rs. 5 per share including premium. The final call of Rs. 2 per share was not yet called on these shares. Of the forfeited shares 800 shares were reissued at Rs. 12 per share fully paid-up. The remaining shares were reissued at Rs. 11 per share fully paid up.
(ii) G. Ltd. forfeited 7,000 equity shares of Rs. 100 each for the non-payment of first call of Rs. 30 per share. These shares were issued at a premium of Rs. 30 per share. The second and final call of Rs. 20 per share was not yet made. The forfeited shares were re-issued at Rs. 80 per share fully paid up.

Answer 1

Amount transferred to Capital Reserve Reserve Case (i) Rs. 5,000 and Case (ii) Rs. 2,10,000.
Hint : In Case (i) it may be assumed that all the shares are reissued at the same time.