Question

Raja Ltd. forfeited 300 shares of ₹100 each, ₹75 called up, for non-payment of first call of ₹20 per share. All these shares were reissued for ₹..... per share as ₹75 paid up. If amount transferred to Capital Reserve is ₹40 per share then what is the reissue price?

Options

• ₹55 per share

• ₹45 per share

• ₹60 per share

• ₹40 per share

Answer 1

₹60 per share

Explanation:

Called up = ₹75

Paid (till application + allotment) = ₹75 – ₹20 = ₹55

Share Forfeiture per share = ₹55.

Transfer per share = Forfeiture − Discount

Transfer per share = ₹40

55 − Discount = 40

Discount = 15

Reissue Price = Paidup Value − Discount

= 75 − 15

= ₹60