Question 62 (Treatment of Gain on Reissue of Forfeited Shares)
62 :- What Amount of gain on reissue will be transferred to Capital Reserve under following situations ?
(i) 3,000 shares of Rs 10 each of Rakesh were forfeited by crediting Rs 5,000 to Forfeited Shares Account. Out of these, 1,800 shares were reissued to Mohan for Rs 9 per share as fully paid-up.
(ii) Z Ltd. Forfeited 20 shares of Rs 100 each (Rs 60 called-up) issued at par to Shiv on which he paid Rs 20 per share. Out of these, 15 shares were reissued to Rajesh as Rs 60 paid-up for Rs 45 per share.
Solution :-
