Question

Raghav Ltd. forfeited 100 shares of ₹ 10 each issued at a premium of 20% for non-payment of first call of ₹ 3 per share and final call of ₹ 1 per share. The minimum price per share at which these shares can be reissued will be ______.

Options

• ₹ 4

• ₹ 6

• ₹ 8

• ₹ 10

Answer 1

Raghav Ltd. forfeited 100 shares of ₹ 10 each issued at a premium of 20% for non-payment of first call of ₹ 3 per share and final call of ₹ 1 per share. The minimum price per share at which these shares can be reissued will be ₹ 4.

Explanation:

The credit balance of Share forfeiture = Amount received on Forfeited Shares except Securities Premium = ₹ 6 Per Share

Maximum discount allowed on the reissue of Shares = ₹ 6 per Share

Minimum Price Per Share at which these Shares can be reused = ₹ 10 − ₹ 6 = ₹ 4