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A company forfeits 1,000 shares of ₹ 10 each. It had received ₹ 6,000 on these shares.What is the maximum discount that can be allowed on reissue of 400 shares?

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Question

A company forfeits 1,000 shares of ₹ 10 each. It had received ₹ 6,000 on these shares.What is the maximum discount that can be allowed on reissue of 400 shares?

Options

  • ₹ 4,000

  • ₹ 400

  • ₹ 1,600

  • ₹ 2,400

MCQ
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Solution

₹ 2,400

Explanation:

Amount received on 1,000 shares = ₹ 6,000, so amount forfeited per share is:

₹ 6,000 ÷ 1,000 = ₹ 6

Maximum discount on reissue of 400 shares:

400 × ₹ 6 = ₹ 2,400​

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Chapter 8: Accounting for Share Capital - QUESTIONS [Page 8.115]

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TS Grewal Accountancy Double Entry Book Keeping Volume 1 and 2 [English] Class 12
Chapter 8 Accounting for Share Capital
QUESTIONS | Q 46. | Page 8.115
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