M. Ltd. forfeited 50 shares of Rs. 100 each issued to X (Rs. 80 called up) on which the allotment money of Rs. 30 and the first call money of Rs. 20 have not been received. The company reissued these shares @ Rs. 90 per share as fully paid up. The amount to be transferred to Capital Reserve Account would be: A. Rs. 500 B. Rs. 1,000 C. Rs. 1,500 D. Rs. 2,000

The correct answer is A. Rs. 500.

The amount to be transferred to Capital Reserve Account is the difference between the amount received on reissue of shares and the amount already received on the shares. In this case, the amount received on reissue of shares is Rs. 4500 (50 shares x Rs. 90 per share). The amount already received on the shares is Rs. 1500 (50 shares x Rs. 30 allotment money + 50 shares x Rs. 20 first call money). Therefore, the amount to be transferred to Capital Reserve Account is Rs. 3000 (Rs. 4500 – Rs. 1500).

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

Option C is incorrect because it is the total amount already received on the shares.

Option D is incorrect because it is the total amount received on reissue of shares plus the total amount already received on the shares.