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✦ FREE LEARNING — CLASS 11 & 12 — CBSE · PSEB — ACCOUNTS · ECONOMICS · BST ✦
Ratan Ltd. forfeited 1,000 shares of ₹10 each for non-payment of the first and final call of ₹2 per share. These shares were reissued, and the gain on reissue transferred to Capital Reserve was ₹5,000. Determine the amount realised from reissue of shares. [Ans.: Amount realised from reissue of shares = ₹7,000]
Amount forfeited on 1,000 shares, ₹8 per share = ₹8,000.
Amount transferred to Capital Reserve = ₹5,000.
Face value of all reissued shares = ₹10,000 (1,000 × ₹10).
Amount of discount = ₹8,000 − ₹5,000 = ₹3,000.
Therefore, amount realised from reissue of shares = ₹10,000 − ₹3,000 = ₹7,000.
Reissue price per share = ₹7,000 ÷ 1,000 = ₹7.
Accounting & Commerce Educator
Sarbjit Singh holds a B.Com and M.Com degree and has over 12 years of teaching experience in double entry bookkeeping, financial accounting, and business studies.
This guide covers "T.S. Grewal Class 12 Vol 2 Chapter 1 Q.98 - Share Capital", focusing on key definitions, step-by-step concepts, applications, and revision guidelines relevant to Chapter 1 - Share Capital.
It is primarily curated for Class 11 and Class 12 high school commerce, accounting, and economics students, as well as aspirants preparing for board exams or CA Foundation.
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