Question

Merak Ltd. forfeited 6,000 equity shares of ₹ 10 each for non-payment of final call of ₹ 3 per share. The minimum amount per share at which these shares can be reissued will be ______.

Options

• ₹ 3

• ₹ 7

• ₹ 10

• ₹ 6

Answer 1

Merak Ltd. forfeited 6,000 equity shares of ₹ 10 each for non-payment of final call of ₹ 3 per share. The minimum amount per share at which these shares can be reissued will be ₹ 3.

Explanation:

Face Value of Share: ₹ 10

Unpaid Final Call: ₹ 3

Amount Already Received (Forfeited Amount): ₹ 10 – ₹ 3 = ₹ 7

Maximum Allowed Discount: Equal to the forfeited amount (₹ 7)

Minimum Reissue Price: Face Value – Maximum Discount = ₹ 10 – ₹ 7 = ₹ 3