Question

If a Share of Rs. 10 on which Rs. 6 has been paid is forfeited, at what minimum price can it be reissued?

Answer 1

Face Value of Share = Rs. 10

Amount Already Paid (Maximum Discount Allowed) = Rs. 6

Minimum Reissue Price = Face Value of Share − Maximum Discount Allowed

Minimum Reissue Price = Rs. 10 − Rs. 6

= Rs. 4