A limited company forfeited 100 share (fully called-up) for non-payment of Rs. 4 per share. Out of these 50 share were re-issued at Rs. 8 per share. What will be amount transferred to capital reserve

The correct answer is: D. Rs. 100

Explanation:

The amount transferred to capital reserve is the difference between the amount received on reissue of forfeited shares and the amount originally paid on those shares. In this case, the amount received on reissue is Rs. 400 (50 shares x Rs. 8 per share), and the amount originally paid is Rs. 400 (100 shares x Rs. 4 per share). Therefore, the amount transferred to capital reserve is Rs. 100.

Option A is incorrect because it is the total amount received on reissue of forfeited shares.

Option B is incorrect because it is the total amount originally paid on forfeited shares.

Option C is incorrect because it is the average of the amount received on reissue of forfeited shares and the amount originally paid on those shares.

Option D is the correct answer because it is the difference between the amount received on reissue of forfeited shares and the amount originally paid on those shares.