Question : Pragya Ltd. forfeited 8,000 equity shares of Rs. 100 each issued at a premium of 10% for non-payment of first and final call of Rs. 30 per share. The maximum amount of discount at which these shares can be reissued will be:
Option 1: Rs. 3,20,000
Option 2: Rs. 5,60,000
Option 3: Rs. 2,40,000
Option 4: Rs. 1,10,000
Correct Answer: Rs. 5,60,000
Solution : The maximum amount of discount on reissued forfeited shares is that it cannot be more than what was paid for them when they were first issued , and that the discount allowed on reissued forfeited shares should be deducted from the share forfeited account.
The maximum amount of discount at which these shares can be reissued is (8,000
× 70) = Rs. 5,60,000.
Hence the Correct answer is option 2.
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