Question

If 10,000 shares of ₹ 10 each were forfeited for non-payment of final call money of ₹ 3 per share and only 7,000 of these shares were reissued @ ₹ 11 per share as fully paid-up, then what is the minimum amount that company must collect at the time of reissue of the remaining 3,000 shares?

Options

• ₹ 21,000.

• ₹ 9,000.

• ₹ 16,000.

• ₹ 30,000.

Answer 1

₹ 9,000.

Explanation:

On each forfeited share, ₹ 7 was already received and ₹ 3 remained unpaid. Hence, the maximum discount on reissue is ₹ 7 per share and the minimum reissue price is:

₹ 10 − ₹ 7 = ₹ 3

For 3,000 shares:

3,000 × ₹ 3 = ₹ 9,000