Vishnu Ltd. forfeited 20 shares of ₹10 each, ₹8 called up, on which John had paid application and allotment money of ₹5 per share, of these, 15 shares were reissued to Parker as fully paid up for ₹6 per share. What is the balance in the share Forfeiture Account after the relevant amount has been transferred to Capital Reserve Account?
(A) ₹0
(B) ₹5
(C) ₹25
(D) ₹100
(C) ₹25
Explanation:
| Date | Particulars | L.F. | Amount (Rs.) | Amount (Rs.) |
| Share Capital A/c | 160 | |||
| To Share Forfeiture A/c | 100 | |||
| To Calls in areal | 60 | |||
| Bank A/c | 150 | |||
| To Share Capital A/c | 90 | |||
| To Share Premium A/c | 60 | |||
| Share Forfeiture A.c | 25 | |||
| To Capital Reserve A/c | 25 |
= `"100"/"20 Shares"`x 15 Shares
= Rs. 75
= Rs. (100 - 75)
= Rs. 25.