X was issued 500 shares of XYZ ltd at Rs.12/- per share including premium of Rs,2/-per share . He paid application money of Rs,3/- but failed to pay the allotment money of Rs,4/- including premium. On his subsequent failure to pay 1st call money of Rs.2.5 per share, his shares were forfeited . Y to whom 400 shares were allotted failed to pay 1st and 2nd call money. After due notice, his shares were forfeited. Out of forfeited shares , 700 shares were reissued to Z as fully paid at Rs.7/- per share (whole of X’s shares being included ). Find the amount to be transferred to capital reserve.
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