Question

Pragya Ltd. forfeited 8,000 equity shares of ₹100 each issued at a premium of 10% for non-payment of first and final call of ₹30 per share. The maximum amount of discount at which these shares can be reissued will be ______.

Options

• ₹80,000

• ₹3,20,000

• ₹5,60,000

• ₹2,40,000

Answer 1

Pragya Ltd. forfeited 8,000 equity shares of ₹100 each issued at a premium of 10% for non-payment of first and final call of ₹30 per share. The maximum amount of discount at which these shares can be reissued will be ₹5,60,000.

Explanation:

Issued at 10% premium (₹10)

Capital received per share = ₹100 − ₹30 = ₹70 ⇒ Share Forfeiture per share = ₹70.

Max discount on reissue = amount in Share Forfeiture = ₹70 per share.

For 8,000 shares: 8,000 × 70 = ₹5,60,000.