Dabur Ltd forfeited 400shares of rs.10 each fully called up, on which the holder has paid only application money of rs.4 per share. Out of these 250 shares were reissued at rs.12 per share fully paid up. Capital rserve will be credited with:- a.1000 b.1600 c.4800 d.3000 The correct answer is (b) but I want to know how??
B (4×400) i.e paid up value
The forfited amount will be transferd to capital reserv....it means ....4 X 400....
And rest of them are fully paid up
Ans b bicos only 4 share are issued at 400
Not 1600 because company reissued only 250 shares.