Question

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

Answer 1

₹ 12,00,000

Explanation:

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.