Question

Z Ltd. forfeited 1000 equity shares of Rs 10 each for the non-payment of the final call of Rs 2 per share. Calculate the maximum amount of discount at which these shares can be reissued.

Answer 1

The maximum discount at which these shares can be re-issued is the credit balance in the Share Forfeiture A/c i.e. Rs 8,000 (1,000 × 8).