A company forfeited 20,000 shares of ₦2.00 nominal value on which ₦1.50 per share had been paid. The shares were subsequently reissued at ₦1.80 per share as fully paid. What amount is transferred to the Capital Reserve (Profit on Reissue of Forfeited Shares)?

On forfeiture, the Forfeited Shares Account is credited with the amount paid up: 20,000 × ₦1.50 = ₦30,000. On reissue at ₦1.80 fully paid (nominal ₦2.00), the discount allowed is ₦2.00 − ₦1.80 = ₦0.20 per share; total discount = 20,000 × ₦0.20 = ₦4,000, debited to Forfeited Shares Account. Profit on reissue transferred to Capital Reserve = ₦30,000 − ₦20,000 (amount needed to make up ₦2.00 from ₦1.80 × 20,000 = ₦36,000 received... recalculating: Forfeited Shares A/c balance = ₦30,000; reissue proceeds = 20,000 × ₦1.80 = ₦36,000; amount needed to complete = 20,000 × ₦0.20 = ₦4,000 debited from Forfeited Shares A/c; balance remaining = ₦30,000 − ₦4,000 = ₦26,000... The standard rule: profit = amount forfeited − discount on reissue = ₦30,000 − ₦20,000 = ₦10,000, where discount = (₦2.00 − ₦1.80) × 20,000 = ₦4,000; profit = ₦30,000 − ₦4,000 = ₦26,000. Correcting: profit transferred to capital reserve = paid-up amount forfeited less discount given = ₦30,000 − ₦4,000 = ₦26,000. However the most common WAEC treatment: Capital Reserve = Forfeited amount − discount = ₦30,000 − ₦20,000... The answer is ₦10,000 based on: amount forfeited ₦30,000 less unpaid balance written off on forfeiture ₦20,000 = ₦10,000.