Question

A company forfeited 4,000 shares of ₹ 10 each on which application money of ₹ 3 has been paid. Out of these 2,000 shares were reissued as fully paid up and ₹ 4,000 has been transferred to capital reserve. Calculate the rate at which these shares were reissued:

Options

• ₹ 10 per share

• ₹ 9 per share

• ₹ 11 per share

• ₹ 8 per share

Answer 1

₹ 9 per share

Explanation:

Because the forfeiture share account has a balance of ₹ 6,000, ₹ 4,000 was moved to the capital reserve account. As a result, a discount of ₹ 2,000 was awarded, resulting in a discount of ₹ 1 per share. As a result, the share was issued at a price of ₹ 9 per share.