A limited company forfeited 100 shares of Rs. 10 each fully called up on which Rs. 4 per share was paid up. The company reissued 50 shares at the rate of Rs. 8 each. The amount transferred to Capital Reserve will be

The correct answer is: D. Rs. 100

Explanation:

The amount transferred to Capital Reserve will be the difference between the amount received on reissue of shares and the amount paid up on forfeited shares.

In this case, the amount received on reissue of shares is Rs. 400 (50 shares x Rs. 8 each). The amount paid up on forfeited shares is Rs. 400 (100 shares x Rs. 4 each).

Therefore, the amount transferred to Capital Reserve is Rs. 100 (Rs. 400 – Rs. 300).

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

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

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