Question

Mayfair Ltd. forfeited 2,000 shares of Rs.10 each, Rs.7 called up, on which only Rs. 4 per share (including Rs.2 premium) and Rs.2 per share on first call has not been paid. Out of these 500 shares were re-issued as fully paid that Rs. 750 was transferred to Capital Reserve. On reissue, how much amount will be transferred to Bank A/c?

(a) Rs. 3,250

(b) Rs. 4,250

(c) Rs. 5,250

(d) Rs. 5,500

Answer 1

Correct answer is (c) Rs. 5,250

Explanation: The total amount received from the re-issue of 500 shares as fully paid is:

500 shares x Rs. 10/share (face value) + Rs. 2/share (premium) = Rs. 6,000

Since Rs. 750 has already been transferred to Capital Reserve, the remaining amount to be transferred to Bank A/c is:

Rs. 6,000 - Rs. 750 = Rs. 5,250