Accounting for Share Capital | CBSE Class 12 Accountancy Notes

This note covers share capital and its categories, equity and preference shares, issue and allotment, calls in arrears and advance, over subscription, premium, non-cash consideration, forfeiture, and reissue.

What is share capital, and how is it classified?

A company is a legal entity distinct from its members. Its shareholders contribute capital, while a board of directors manages its affairs. A share is a unit of the company's total share capital and represents an ownership interest.

Since many people contribute, their contributions are recorded together in a Share Capital Account rather than in a separate capital account for every shareholder.

How do the capital categories connect?

Authorised capital is the maximum share capital the memorandum permits the company to issue. Issued capital is the portion actually issued, including shares allotted to vendors and signatories to the memorandum.

Subscribed capital is the part of the issue taken up. An over subscription does not increase the number of shares ultimately allotted beyond the issue.

Called-up capital is the amount the company has requested on subscribed shares. Paid-up capital is the amount actually received towards those calls. The unpaid portion is calls in arrears. Uncalled capital has not yet been requested.

A company may designate part of uncalled capital as reserve capital, callable only on winding up.

For a calculation, let C be called-up capital, A be calls in arrears, and P be paid-up capital. Then P = C − A.

If S is the number of subscribed shares and v is the called amount per share, C = S × v. These relationships distinguish a company's demand from its cash collection.

Worked example 1. Sunrise Company has authorised capital divided into 4,00,000 shares of Rs. 10 each. It offers 2,00,000 shares, receives applications for 2,50,000, allots 2,00,000 and rejects the rest. Rs. 8 per share has been called, and all amounts are received except the Rs. 3 first call on 2,000 shares. Calculate authorised, issued, called-up and paid-up capital.

Answer: Authorised capital is Rs. 40,00,000 and issued capital is Rs. 20,00,000. Called-up capital is 2,00,000 × Rs. 8 = Rs. 16,00,000. Calls in arrears are 2,000 × Rs. 3 = Rs. 6,000. Paid-up capital is Rs. 15,94,000. The final call remains uncalled.

The categories answer different questions. Authorised capital sets the permitted ceiling; issued and subscribed capital trace the offer and acceptance; called-up and paid-up capital trace the demand and receipt. The 50,000 applications rejected in the Sunrise illustration do not become subscribed shares.

How do equity and preference shares differ?

The company's capital is divided into equity shares and preference shares. A preference share has a preferential right to a dividend at a fixed amount or rate before any dividend is paid to equity shareholders.

On winding up, it also has a preferential right to repayment of capital before equity shareholders. These are the two defining preferences.

What rights attach to each class?

An equity share is a share that is not a preference share. Equity shareholders receive a share of distributable profits after the preference dividend rights have been satisfied. Their dividend is not fixed; it can vary with available profits.

Equity capital may carry voting rights or differential rights concerning voting, dividend, or other matters under the prescribed conditions.

Preference shares can be participating or non-participating, depending on whether they share in surplus as specified. They may also be cumulative or non-cumulative, and redeemable or irredeemable. These classifications concern attached rights. They do not change the basic distinction between preference and equity shares.

The memorandum of association states the authorised capital and its division into shares. The articles of association prescribe classes of shares and their respective rights and obligations.

For accounting purposes, the procedure for issuing equity and preference shares is the same; the account names are prefixed with “Equity” or “Preference” to identify the class.

How are applications, allotment and calls recorded?

A company may collect the price of a share in instalments. Application money is paid with the application, allotment money becomes due on allotment, and the balance may be collected through first, second and final calls.

The whole amount can also be requested with the application. Allotment makes the applicant a shareholder.

For a straightforward cash issue at par, record each demand separately from each receipt. The temporary application, allotment and call accounts show the stage at which money is due or received. Amounts relating to allotted shares ultimately reach Share Capital Account.

1. On receiving applications: debit Bank A/c and credit Share Application A/c for the money received.
2. On allotment: debit Share Application A/c and credit Share Capital A/c for the application money relating to shares allotted.
3. When allotment becomes due: debit Share Allotment A/c and credit Share Capital A/c. On receipt, debit Bank A/c and credit Share Allotment A/c.
4. For each call: debit the relevant Share First Call or Share Second and Final Call A/c and credit Share Capital A/c. On receipt, debit Bank A/c and credit that call account.

What changes when applications are rejected?

If an application is rejected, debit Share Application A/c and credit Bank A/c for its refund. Where shares are allotted in a smaller number than applied for, excess application money can instead be credited to Share Allotment A/c.

A final call may be called “First and Final Call” if the entire balance after allotment is collected in one call.

Worked example 2. Eastern Company issued and fully allotted 40,000 shares of Rs. 10. It received Rs. 4 per share on application, Rs. 3 on allotment and the Rs. 3 balance on its first and final call.

Answer: Application received and transferred: Rs. 1,60,000 each. Allotment due and received: Rs. 1,20,000 each. First and final call due and received: Rs. 1,20,000 each. The journal pairs are shown below.

The three amounts credited to Share Capital total Rs. 4,00,000, matching 40,000 shares × Rs. 10. The bank receipts also total Rs. 4,00,000 because no shareholder is in arrears in this illustration.

What happens when calls are in arrears or paid in advance?

Calls in arrears arise when a shareholder does not pay allotment or call money due. Without a separate arrears account, the unpaid balance remains in the relevant instalment account.

If a separate Calls in Arrears A/c is maintained, debit it and credit the unpaid allotment or call account. It is deducted in arriving at paid-up capital.

How is an advance adjusted?

Calls in advance are amounts received before the related call is made. Debit Bank A/c and credit Calls in Advance A/c on receipt. This account represents a liability, not paid-up share capital.

When the call becomes due, debit Calls in Advance A/c and credit the particular call account to adjust the advance.

The articles may provide for interest on arrears and advance. Where the articles are silent, Table F provides rates not exceeding 10% per annum for arrears and 12% per annum for advance.

Record interest only when the question requires it. On receipt of arrears with interest, debit Bank A/c and credit Calls in Arrears A/c and Interest on Calls in Arrears A/c for their respective amounts.

For a computation, let n be the shares with an unpaid instalment and r be that instalment per share. Then A = n × r. Do not subtract an advance from the called-up amount before its call becomes due; the advance belongs in its own account until adjustment.

Worked example 3. Cronic Limited issued 10,000 shares of Rs. 10 each. The second and final call was Rs. 2.50 per share, but a holder of 100 shares did not pay it.

Answer: Call due is 10,000 × Rs. 2.50 = Rs. 25,000. Arrears are 100 × Rs. 2.50 = Rs. 250, so Bank receives Rs. 24,750.

Debit Share Second and Final Call A/c Rs. 25,000 and credit Share Capital A/c Rs. 25,000 when due.

On collection, debit Bank A/c Rs. 24,750 and Calls in Arrears A/c Rs. 250; credit Share Second and Final Call A/c Rs. 25,000.

Konica Limited illustrates both kinds of balance in one collection. Its first call is Rs. 20 on each of 1,000 shares, so Rs. 20,000 is due. One holder of 100 shares owes Rs. 2,000.

Another holder of 50 shares pays the uncalled Rs. 25 balance on each, creating a Rs. 1,250 advance.

The resulting entry is Bank A/c Dr. Rs. 19,250; Calls in Arrears A/c Dr. Rs. 2,000; To Equity Share First Call A/c Rs. 20,000; To Calls in Advance A/c Rs. 1,250.

The debit side is Rs. 21,250 and the credit side is Rs. 21,250. The bank amount consists of Rs. 18,000 first-call money from 900 shares and Rs. 1,250 paid in advance.

How are over subscription and under subscription handled?

Over subscription means applications exceed the shares offered. Directors may accept some applications in full and reject the rest, allot to all applicants proportionately, or combine rejection and proportionate allotment. The number recorded as subscribed shares is the number actually allotted, not the greater number applied for.

How does pro-rata adjustment work?

With complete rejection, refund the rejected applicants' application money. With pro-rata allotment, retain the application money relating to allotted shares and normally apply the excess from successful applicants towards allotment.

If that excess is greater than the allotment amount, the balance can be refunded or credited to calls in advance. In a combined method, refund outright rejections and adjust the excess of the proportionately allotted group.

1. Calculate money received on all applications and debit Bank A/c, credit Share Application A/c.
2. Determine shares allotted, shares rejected and the allotment ratio for any pro-rata group.
3. Debit Share Application A/c for its full balance; credit Share Capital A/c for application money on allotted shares, Bank A/c for refunds, and Share Allotment A/c for the excess adjusted.
4. Record the full allotment amount due, then collect only the balance after application money adjustments and any unpaid allotment.

For example, applications for 25,000 shares are received for an issue of 20,000 shares. A pro-rata allotment gives four shares for every five applied for. Application money on the 5,000 excess applications is adjusted to allotment, rather than becoming share capital for another 5,000 shares.

Under subscription means applications are fewer than shares offered. For example, a company offers 2,00,000 shares but receives applications for 1,90,000, so allotment is limited to 1,90,000. The minimum subscription condition must be met; otherwise the application money is refunded.

For example, under the mixed method, a company receives applications for 15,000 shares against an issue of 10,000, rejects applications for 2,500 shares outright, and allots the 10,000 shares pro rata against applications for 12,500 shares.

Keep the rejected group separate when calculating excess application money: only the 2,500 extra applications within the pro-rata group generate the adjustment.

How are shares issued at premium or for non-cash consideration?

An issue is at par when issue price equals face value. An issue at premium has a price greater than face value. The premium is credited to Securities Premium Reserve A/c, separately from Share Capital A/c.

The company may call premium with application, allotment or a call, although it is generally called with allotment.

Where does the premium enter the journal?

When premium is included in allotment, debit Share Allotment A/c for the full amount due, credit Share Capital A/c for its capital portion, and credit Securities Premium Reserve A/c for its premium portion.

On payment, debit Bank A/c and credit Share Allotment A/c. The accounting entry must therefore identify which instalment carries premium.

Worked example 4. Jupiter Company issued 35,000 equity shares of Rs. 10 at Rs. 2 premium. It called Rs. 3 on application, Rs. 5 on allotment including premium, and the balance on first and final call. All money was received.

Answer: Application is Rs. 1,05,000. Allotment due is Rs. 1,75,000, split into Rs. 1,05,000 Share Capital and Rs. 70,000 Securities Premium Reserve. Final call is Rs. 4 per share, or Rs. 1,40,000. Total cash received is Rs. 4,20,000, comprising Rs. 3,50,000 nominal capital and Rs. 70,000 premium.

The reserve may be used for specified purposes, including fully paid bonus shares, preliminary expenses, expenses or commission on securities, premium on redemption of preference shares or debentures, and buy-back of shares.

Ordinary issue of shares at a discount is restricted; reissue of forfeited shares and issue of sweat equity shares are exceptions.

Shares may also pay a vendor for an asset. First debit the asset account and credit the vendor account for the amount payable.

Then debit the vendor and credit Share Capital for nominal value, adding Securities Premium Reserve if the issue price exceeds nominal value. No issue proceeds enter Bank merely because shares are allotted to the vendor.

Let N be shares issued, V the amount payable to the vendor, and I the issue price per share. The relationship is N = V / I. In the Rahul Limited building example, V is Rs. 5,40,000.

At Rs. 100 per share, N is 5,400; at Rs. 120 including 20% premium, N is 4,500.

How is forfeiture recorded when an allotment or call is unpaid?

Forfeiture cancels shares under the company's articles when the holder fails to pay an instalment. Debit Share Capital A/c for the called-up nominal amount on the forfeited shares.

Credit unpaid allotment or call accounts, or Calls in Arrears A/c if that account is used. Credit Share Forfeiture A/c for the capital amount already received on those shares.

What happens to unpaid premium?

For shares issued at par, the entry balances because called-up capital equals capital received plus unpaid calls. For shares issued at premium, inspect the premium separately. If it was received, leave Securities Premium Reserve untouched at forfeiture.

If it was called but remains unpaid, debit Securities Premium Reserve for that unpaid premium as well.

1. Identify the number of forfeited shares and the nominal amount called up on each.
2. Determine which allotment or call balances remain unpaid for those shares.
3. Check whether any premium credited earlier was actually received; debit the reserve for any unpaid premium.
4. Credit Share Forfeiture with capital money already received and confirm total debits equal total credits.

Worked example 5. Honda Limited allotted 10,000 shares of Rs. 100. A holder of 300 shares paid Rs. 20 on application and Rs. 30 on allotment, but neither the Rs. 20 first call nor the Rs. 30 second and final call.

Answer: Debit Share Capital A/c Rs. 30,000. Credit Share First Call A/c Rs. 6,000 and Share Second and Final Call A/c Rs. 9,000 for unpaid calls. Credit Share Forfeiture A/c Rs. 15,000 for 300 × (Rs. 20 + Rs. 30) received. Both sides equal Rs. 30,000.

For an unpaid premium example, Sunena held 500 shares of Rs. 10. She did not pay Rs. 4 allotment per share, including Rs. 2 premium, or the Rs. 3 first and final call.

The capital portion called is Rs. 10 per share, or Rs. 5,000. The premium unpaid is Rs. 1,000.

The correct entry is Share Capital A/c Dr. Rs. 5,000; Securities Premium Reserve A/c Dr. Rs. 1,000; To Share Allotment A/c Rs. 2,000; To Share First and Final Call A/c Rs. 1,500; To Share Forfeiture A/c Rs. 2,500.

The Rs. 2,000 unpaid allotment includes Rs. 1,000 nominal value and Rs. 1,000 premium. The Rs. 2,500 forfeited was the application capital received.

Share Forfeiture's balance is added to paid-up share capital in the balance sheet while the forfeited shares await reissue. The forfeiture entry does not treat unpaid premium as a gain.

How are forfeited shares reissued and capital reserve calculated?

Forfeited shares may be reissued as fully paid at par, at premium or at a discount. When issued below face value, the discount on the reissued shares is debited to Share Forfeiture A/c.

The discount cannot exceed the amount previously received on those particular shares at the time of their original issue.

How is reissue profit measured?

At a discounted reissue, debit Bank A/c for cash received and Share Forfeiture A/c for the discount; credit Share Capital A/c for the full nominal amount of the reissued shares.

At par, debit Bank and credit Share Capital for the nominal amount. The balance of forfeiture money relating to shares reissued, after any reissue discount, is transferred to Capital Reserve A/c.

Let F be forfeiture money relating to shares actually reissued, D the discount on their reissue, and R the amount transferred to capital reserve. Then R = F − D.

If only some forfeited shares are reissued, the forfeiture balance relating to shares still held for reissue remains in Share Forfeiture A/c.

Worked example 6. Poly Plastic Limited forfeited 200 shares of Rs. 100 each after non-payment of the Rs. 30 second and final call. It reissued 150 of them as fully paid for Rs. 60 each.

Answer: On forfeiture, debit Share Capital Rs. 20,000; credit Share Second and Final Call Rs. 6,000 and Share Forfeiture Rs. 14,000. On reissue, debit Bank Rs. 9,000 and Share Forfeiture Rs. 6,000; credit Share Capital Rs. 15,000.

The forfeiture money on 150 shares is Rs. 10,500. Transfer Rs. 4,500 to Capital Reserve, leaving Rs. 3,500 on 50 unreissued shares.

The entry transferring the profit is Share Forfeiture A/c Dr. Rs. 4,500; To Capital Reserve A/c Rs. 4,500. Crediting the whole Rs. 14,000 forfeiture balance to Capital Reserve would ignore the 50 shares still awaiting reissue. The same share specific restriction determines the maximum allowable discount.

How can the full share issue be checked before finalising the journal?

Begin with the terms of issue: number and face value of shares, any premium, and the amount requested at application, allotment and each call. For each stage, multiply the number of relevant allotted shares by the amount per share.

Keep application receipts on all applications separate from capital on shares actually allotted.

Which reconciliations expose errors?

Next reconcile refunds and adjustments. Application money received must equal the total transferred to Share Capital, transferred to Securities Premium Reserve where premium is collected on application, adjusted to allotment or calls in advance, and refunded to rejected applicants or successful applicants with surplus application money. An allotment receivable must reconcile with cash received, excess application money applied, and any unpaid amount.

1. Recompute the price per share as nominal value plus premium, then check the sum of instalments against that price.
2. Recompute each due amount from shares allotted and the specified instalment; credit nominal amounts to Share Capital and premium to its reserve.
3. For each receipt, separate actual Bank movement from applications adjusted, arrears carried, and calls paid in advance.
4. Before forfeiture or reissue, calculate amounts share by share for the affected holders; check every journal entry's total debits against its total credits.

After forfeiture, the capital initially credited for those shares has been cancelled through the Share Capital debit. On reissue, the new Share Capital credit reflects the full nominal value of the reissued shares. Share Forfeiture absorbs any reissue discount, and only the related residual gain is transferred to Capital Reserve.

Cross-check the Jupiter illustration: Rs. 3 application + Rs. 5 allotment + Rs. 4 final call = Rs. 12 issue price per share. Of that Rs. 12, Rs. 10 is share capital and Rs. 2 is premium.

Across 35,000 shares, the resulting balances are Rs. 3,50,000 Share Capital and Rs. 70,000 Securities Premium Reserve, equal to the Rs. 4,20,000 cash collected.

For Poly Plastic, the Rs. 40 discount per reissued share is below the Rs. 70 previously received per share.

The transfer of Rs. 4,500 and remaining forfeiture balance of Rs. 3,500 together reconcile with the Rs. 8,000 left after the Rs. 6,000 reissue discount is debited to the original Rs. 14,000 forfeiture credit.

Glossary

• Share — a unit of a company's share capital that forms the basis of a shareholder's ownership interest.
• Authorised capital — the maximum share capital a company is authorised by its memorandum to issue.
• Issued capital — the part of authorised capital actually issued, including shares allotted to vendors and memorandum signatories.
• Subscribed capital — the part of issued capital taken up by applicants and ultimately allotted by the company.
• Called-up capital — the part of subscribed capital that the company has asked shareholders to pay.
• Paid-up capital — the portion of called-up capital actually received after deducting unpaid calls.
• Reserve capital — a portion of uncalled capital reserved for a call only on the company's winding up.
• Preference share — a share carrying priority in dividend payment and repayment of capital on winding up.
• Calls in arrears — allotment or call amounts due from shareholders but not received by the company.
• Calls in advance — money received from shareholders before the related call has been made.
• Pro-rata allotment — proportional allotment of offered shares among applicants when applications exceed shares available.
• Securities premium — the amount by which a share's issue price exceeds its nominal value.
• Share forfeiture — cancellation of allotted shares for non-payment under the company's articles, with amounts received retained.
• Capital reserve — the account receiving the remaining capital profit on reissued forfeited shares after any reissue discount.

Common errors and misconceptions

• Misconception: Application money on rejected shares becomes share capital. Correct: It is refunded, while only the application money for allotted shares is transferred to capital.
• Misconception: Paid-up capital includes money received for a call not yet made. Correct: Calls in advance are a liability until adjusted against a due call.
• Misconception: An unpaid call reduces the amount called. Correct: It creates calls in arrears; paid-up capital is called-up capital less the arrears.
• Misconception: Premium is part of the face value credited to Share Capital. Correct: Credit Securities Premium Reserve separately for the premium portion.
• Misconception: Securities Premium Reserve is debited whenever a premium share is forfeited. Correct: Debit it for premium called but not received on the forfeited shares.
• Misconception: Any reissue discount is allowed if the whole Share Forfeiture Account has enough credit. Correct: Test the amount received on the particular forfeited shares being reissued.
• Misconception: Transfer all forfeiture money to Capital Reserve after only a partial reissue. Correct: Transfer only the gain relating to shares actually reissued.

Exam-style questions with model answers

Q1. What is the difference between called-up and paid-up capital? [2 marks]

1. Called-up capital is the portion of subscribed capital that the company has requested from shareholders. Paid-up capital is the portion of that called amount actually received. Unpaid allotment or call money forms calls in arrears, so paid-up capital equals called-up capital less calls in arrears.

Q2. State the entries when shares issued at par are fully subscribed and paid through application, allotment and one call. [4 marks]

1. On application receipt, debit Bank and credit Share Application. On allotment, debit Share Application and credit Share Capital for money on allotted shares. Debit Share Allotment and credit Share Capital for allotment due; then debit Bank and credit Share Allotment on receipt. Debit Share First and Final Call and credit Share Capital for the call due; then debit Bank and credit that call account when cash arrives. Each debit and credit uses the amount for its own instalment.

Q3. How are excess applications dealt with on a mixed rejection and pro-rata allotment? [3 marks]

1. First refund the application money of applicants whose applications are rejected outright. For the remaining applicants, calculate the allotment ratio and the excess application money on shares applied for but not allotted. Transfer application money relating to shares allotted to Share Capital, and adjust excess application money against allotment dues. If the excess exceeds allotment dues, refund the remainder or credit it to Calls in Advance. Record the full allotment due separately and collect any balance still payable. Applications received do not themselves increase subscribed capital beyond shares allotted.

Q4. Jupiter Company issues 35,000 equity shares of Rs. 10 at Rs. 2 premium, payable Rs. 3 on application, Rs. 5 on allotment including premium, and the balance on first and final call. The issue is fully subscribed and all money is received. Journalise the transactions. [6 marks]

1. Application receipt: Bank Dr. Rs. 1,05,000; To Equity Share Application Rs. 1,05,000. Transfer: Equity Share Application Dr. Rs. 1,05,000; To Equity Share Capital Rs. 1,05,000. Allotment due: Equity Share Allotment Dr. Rs. 1,75,000; To Equity Share Capital Rs. 1,05,000; To Securities Premium Reserve Rs. 70,000. Receipt: Bank Dr. Rs. 1,75,000; To Equity Share Allotment Rs. 1,75,000. The final call is Rs. 12 issue price less Rs. 3 and Rs. 5, or Rs. 4 per share. Equity Share First and Final Call Dr. Rs. 1,40,000; To Equity Share Capital Rs. 1,40,000. On receipt, Bank Dr. Rs. 1,40,000; To Equity Share First and Final Call Rs. 1,40,000.

Q5. Explain the forfeiture entry when premium on allotment is unpaid. [4 marks]

1. Debit Share Capital for called-up nominal value on the forfeited shares. Debit Securities Premium Reserve for the premium called but not received. Credit unpaid allotment and call accounts, or Calls in Arrears if used, for their outstanding amounts. Credit Share Forfeiture for capital money already received.

Q6. Poly Plastic forfeits 200 shares of Rs. 100 after a Rs. 30 final call remains unpaid, then reissues 150 as fully paid at Rs. 60. Journalise and calculate capital reserve. [6 marks]

1. Forfeiture: Share Capital Dr. Rs. 20,000; To Share Second and Final Call Rs. 6,000; To Share Forfeiture Rs. 14,000. The forfeiture credit is 200 × Rs. 70 received. Reissue: Bank Dr. Rs. 9,000 and Share Forfeiture Dr. Rs. 6,000; To Share Capital Rs. 15,000. The discount of Rs. 40 on each of 150 shares does not exceed Rs. 70 received per share. The forfeiture amount belonging to the 150 shares is Rs. 10,500, leaving Rs. 4,500 after the discount. Transfer it by Share Forfeiture Dr. Rs. 4,500; To Capital Reserve Rs. 4,500. Retain Rs. 3,500 for the 50 unreissued shares.

Key takeaways

• Authorised, issued and subscribed capital track the permission, offer and acceptance of shares; called-up and paid-up capital track demands and receipts.
• Application, allotment and each call have their own temporary accounts; capital is credited when the relevant amount becomes due or is transferred.
• Calls in arrears reduce paid-up capital, while calls in advance remain a liability until the relevant call becomes due.
• In over subscription, refund rejected applications and adjust excess application money from successful applicants towards allotment where appropriate.
• Credit share premium to Securities Premium Reserve separately; if called premium is unpaid on forfeited shares, reverse that unpaid premium.
• On forfeiture, debit called-up nominal share capital, clear unpaid instalments, and credit capital already received to Share Forfeiture.
• Reissue discount is limited by money forfeited on the shares reissued; transfer only their remaining gain to Capital Reserve.

Test yourself

Which capital figure is limited by the memorandum?

Authorised capital is the maximum share capital the company's memorandum authorises it to issue. Issued capital can be lower.

Where is an unpaid call recorded?

It remains a debit balance of the relevant call account, or it is transferred by debit to a separate Calls in Arrears A/c.

Why is a call received early not included in paid-up capital?

The related call has not become due. Credit Calls in Advance A/c as a liability and adjust it when that call becomes due.

Jupiter issues 35,000 shares at a premium of Rs. 2 per share. How much total securities premium arises?

There are 35,000 shares at Rs. 2 premium each, giving Rs. 70,000 credited to Securities Premium Reserve.

When is Securities Premium Reserve debited on forfeiture?

Debit it for premium already called but not received on the forfeited shares. Premium actually received remains credited.

Poly Plastic forfeits 200 shares of Rs. 100 each on which Rs. 70 per share was received, then reissues 150 as fully paid at Rs. 60 each. After recording the reissue and transferring the related profit to Capital Reserve, how much remains in Share Forfeiture for the unreissued shares?

Rs. 3,500 belongs to the 50 shares not reissued: 50 × Rs. 70 originally received per share.