Ance Philip (Admin Exe (MBA ) IPCC 2013) (80 Points)
01 June 2012Hi,
Mr. Bajaj who was the holder of 200 equity shares of Rs. 100 each of Canny Ltd. on which only Rs. 75 per share has been called up, couldn't pay his dues on allotment and first class each at Rs. 25 per share. The director forfeited the above shares and reissued 150 of such shares to Mr. Birla at Rs. 65 per share paid up as Rs. 75 per share. the amount to be transferred to capital reserve account will be? (explain)
raghu
(IPCC STUDENT)
(270 Points)
Replied 01 June 2012
we have to find out forfeature amount 1st 200*25 = 5000
forfeature amount per share = 5000/200 = 25
loss on reissue of share (75-65) = 10
_____
15
_____
15*150 shares = 2250/-
shakuntala chhangani
(FCA Course co-ordinator WIRC coaching centre)
(2525 Points)
Replied 01 June 2012
Hi, Amount to be transferred to capital reserve is calculated as follows :
(Amopunt received from defaulting shareholder per share - discount allowed on reissue per share) x no. of shares reissued
= (25-10) * 150
= 2,250
Regards,
CA Shakuntala Chhangani
CAclubindia
