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Question

The directors of X Ltd. resolved to forfeit 2000 equity shares of ` 10 each. On these shares ` 7.50 per share was paid up, but final call of ` 2.50 per share was unpaid. 1,000 of the forfeited shares were reissued at ` 7 per share. Capital Reserve Account will be credited by

A 4,500
B 7,500
C 2,500
D 5,000

Answer & Explanation

Answer:4,500

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