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Commerce · Q710

Accounting

Graduate and Post Graduate · Commerce · question 710

Q710

X Ltd. forfeited 20 shares of Rs. 10 each (Rs. 8 called up) on which John had paid application and allotment money of Rs. 5 per share. Of these, 15 shares were reissued to Parker as fully paid up for Rs. 6 per share. What is the balance in the share forfeiture account after the relevant amount is transferred to the capital reserve account?

A.
NIL
B.
Rs. 5
C.
Rs. 25
Answer
D.
Rs. 100

Answer: Option C

Solution

Answer: Option C
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