06 October 2008
D LTD issued 10000 equity shares of rs 10 each at a premium of 20%.the share amount was payable as on application 2 on allot.. 5(inc premium) on first call 3 on second " 2 applications were received for 14000 shares and the shares were alloted to applicants on prorata basis . E who was alloted 300 shares failed to pay the first call. on his subsequent failure to pay second and final call his shares were forfeited. out of the forfeited shares 200 shares were reissued @rs 9 per share. WAT IS THE AMOUNT OF CAPITAL RESERVE? PLS EXPLAIN METHOD OF CALCULATION
21 October 2008
Amount recd on 300 shares= Rs.2100 Amount forfeited Rs 2100. Loss on reissue Rs 200. This loss is adjusted against the forfeited amount and the balance amount will be capital reserve.
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