Question

Parmanand limited forfeited 500 shares of ₹10 each (₹8 called up) held by Satish for non-payment of the First call of ₹3 per share. 300 of these shares are reissued immediately in such a manner that ₹600 is transferred to Capital Reserve A/c. What is the price at which the shares are reissued?

विकल्प

• ₹7 per share

• ₹5 per share

• ₹3 per share

• ₹2 per share

Answer 1

₹5 per share

Explanation:

Forfeiture

500 shares of ₹10 each, ₹8 called up
Non-payment of First Call = ₹3
So, amount received per share = 8 − 3 = ₹5
Forfeited amount per share = ₹5
Total forfeited = 500 × 5 = ₹2,500

Working for reissue price

For 300 shares, forfeiture available = 300 × 5 = ₹1,500
Capital Reserve = Forfeiture − Discount on reissue
Given Capital Reserve = ₹600
Discount on reissue = ₹1,500 − 600 = ₹900
Discount per share = 900 ÷ 300 = ₹3

Issue price
alled-up = ₹8 per share
Discount allowed = ₹3 per share
Reissue price = 8 − 3

= ₹5 per share