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Question
Zinki Limited forfeited a share of ₹ 100 issued at a premium of 20% for non-payment of first call of ₹ 30 per share and final call of ₹ 10 per share. The minimum price at which this share can be reissued is ______.
Options
₹ 40.
₹ 60.
₹ 20.
₹ 100.
MCQ
Fill in the Blanks
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Solution
Zinki Limited forfeited a share of ₹ 100 issued at a premium of 20% for non-payment of first call of ₹ 30 per share and final call of ₹ 10 per share. The minimum price at which this share can be reissued is ₹ 40.
Explanation:
Unpaid share capital = ₹ 30 + ₹ 10 = ₹ 40.
Therefore, amount forfeited out of face value is:
₹ 100 − ₹ 40 = ₹ 60
Maximum discount = ₹ 60, so minimum reissue price:
₹ 100 − ₹ 60 = ₹ 40
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