Question

4,000 shares of ₹ 10 each were forfeited for non-payment of the second and final call money of ₹ 2 per share. The minimum amount that the company must collect at the time of reissue of these shares will be ______.

Options

• ₹ 8,000

• ₹ 32,000

• ₹ 40,000

• ₹ 48,000.

Answer 1

4,000 shares of ₹ 10 each were forfeited for non-payment of the second and final call money of ₹ 2 per share. The minimum amount that the company must collect at the time of reissue of these shares will be ₹ 8,000.

Explanation:

A company may reissue forfeited shares at any price; however, the total amount received on reissue must not be less than the amount unpaid on the shares at the time of forfeiture. Therefore, the minimum amount to be received on reissue = 4,000 × ₹ 2

= ₹ 8,000