Question

ZLtd. forfeited 1,000 equity shares of Rs. 100 each for the non-payment of first call of Rs. 20 per share and ssecond and final call of Rs. 25 per share. State :
(i) Can these shares be re-issued ?
(ii) If yes, state the minimum amount at which these shares can be re-issued.
(iii) If these shares were re-issued at Rs. 50 per share fully paid up, what will be the amount of Capital Reserve ?

Answer 1

(i) Yes, these shares can be re-issued.
(ii) The minimum amount Rs. 45 per share.
(iii) Amount transferred to Capital Reserve Rs. 5,000.