Question

Sakshi Ltd. forfeited 500 equity shares of ₹ 10 each, issued at a premium of ₹ 2 per share for non-payment of the second and final call of ₹ 4 per share (including premium).

The maximum amount of discount at which these shares can be reissued is ______.

Options

• ₹ 1 per share

• ₹ 6 per share

• ₹ 8 per share

• ₹ 5 per share

Answer 1

Sakshi Ltd. forfeited 500 equity shares of ₹ 10 each, issued at a premium of ₹ 2 per share for non-payment of the second and final call of ₹ 4 per share (including premium).

The maximum amount of discount at which these shares can be reissued is ₹ 6 per share.

Explanation:

1. Total value per share = Face Value + Premium

= 10 + 2

= 12

Unpaid amount = ₹ 4

Amount Paid = Total value − Unpaid

= 12 − 4

= 8 per share

2. Out of the ₹ 8 collected, ₹ 2 was for the premium.

Face value = 8 − 2

= 6 per share

3. Determine Maximum Discount:

Maximum discount allowed = Amount collected towards face value

Maximum Discount = ₹ 6 per share