X Ltd. forfeited 30 shares of Rs. 10 each fully called up for non payment of allotment money of Rs. 3 per share and call money of Rs. 4 per share. These share were re-issued for Rs. 8 per share fully paid. What is the amount to be transferred to Capital Reserve A/c:

The correct answer is D. Rs. 90.

Explanation:

The amount received on re-issue of forfeited shares = Rs. 8 x 30 = Rs. 240.
The amount forfeited on each share = Rs. 10 – Rs. 3 – Rs. 4 = Rs. 3.
The amount to be transferred to Capital Reserve A/c = Rs. 3 x 30 = Rs. 90.

Option A is incorrect because it is the total amount received on re-issue of forfeited shares.
Option B is incorrect because it is the amount received on re-issue of forfeited shares less the amount forfeited on each share.
Option C is incorrect because it is the amount forfeited on each share.