how to calculate the amount to be transferred to Capital Reserve
Dear student
first calculate the amount of forfeited on reissue of shares by applying this formula = X no. of shares reissue.
second: calculate the amount of loss on reissue of shares.
third, subtract second from first, we will get capital reserve.
for example:issue price of per share is rs 10.
total no. of shares forfeited is 3,000
no. of shares reissue is 2,500
total amount forfeitted is rs 13,500
shares reissue at rs 8 per share:
now, follow th3 above procedure:
first: X 2500 = rs 11,250
second : loss on reissue of sharei.e rs 2 per share (2,500 X 2)= rS 5,000
THIRD : 11,250 - 5,000 = 6,250
rs 6,250 is a capital reserve
Regards
first calculate the amount of forfeited on reissue of shares by applying this formula = X no. of shares reissue.
second: calculate the amount of loss on reissue of shares.
third, subtract second from first, we will get capital reserve.
for example:issue price of per share is rs 10.
total no. of shares forfeited is 3,000
no. of shares reissue is 2,500
total amount forfeitted is rs 13,500
shares reissue at rs 8 per share:
now, follow th3 above procedure:
first: X 2500 = rs 11,250
second : loss on reissue of sharei.e rs 2 per share (2,500 X 2)= rS 5,000
THIRD : 11,250 - 5,000 = 6,250
rs 6,250 is a capital reserve
Regards