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Vanya Ltd. Forfeited 20,000 Equity Shares of ₹ 100 Each for Non-payment of First and Final Call of ₹ 40 per Share. the Maximum Amount of Discount at Which These Shares Can Be Re-issued Will Be : - Accountancy

MCQ

Choose the appropriate alternative from the given options:
Vanya Ltd. forfeited 20,000 equity shares of ₹ 100 each for non-payment of first and final call of ₹ 40 per share. The maximum amount of discount at which these shares can be re-issued will be:

Options

  • ₹ 8,00,000

  • ₹ 12,00,000

  • ₹ 20,00,000

  • ₹ 20,000

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Solution

Amount standing in the Share forfeiture A/c is ₹ 12,00,000; 20,000 equity shares at ₹ 60 (₹ 100 - ₹ 40) which is the maximum permissible discount on re-issue of the forfeited equity shares. So, the maximum amount of discount at which these shares can be re-issued will be ₹ 12,00,000.

Hence, the correct answer is ₹ 12,00,000.

Concept: Accounting Treatment of Forfeiture and Re-issue of Share
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