As shareholders holding 500 shares of Rs. 10 each issued at 10% discount pays Rs. 2 on application and Rs. 3 on allotment. However he fails to pay Rs. 3 on first call. His shares were forfeited and re-issued at Rs. 6 per share. Amount transferred to capital reserve will be

The correct answer is A. Rs. 1,000.

Explanation:

The shareholder paid Rs. 2 x 500 = Rs. 1,000 on application.
He also paid Rs. 3 x 500 = Rs. 1,500 on allotment.
The total amount paid by the shareholder is Rs. 1,000 + Rs. 1,500 = Rs. 2,500.
However, he failed to pay the first call of Rs. 3 per share.
Therefore, the amount forfeited is Rs. 3 x 500 = Rs. 1,500.
The amount transferred to capital reserve is the difference between the amount received on application and allotment and the amount forfeited.
This is Rs. 2,500 – Rs. 1,500 = Rs. 1,000.

Here is a brief explanation of each option:

Option A: Rs. 1,000. This is the correct answer.
Option B: Rs. 2,000. This is the amount received on application and allotment. However, this amount is not the amount transferred to capital reserve.
Option C: Rs. 2,500. This is the total amount paid by the shareholder. However, this amount is not the amount transferred to capital reserve.
Option D: Rs. 3,000. This is the amount forfeited. However, this amount is not the amount transferred to capital reserve.