Question

Alpha Ltd. forfeited 200 equity share of Rs. 10 each on which Rs. 6 each waspaid. (includes Rs. 1 premium). On reissue, the company can allow Rs. _____each as discount.

Answer 1

Answer:

Rs.5 each as discount

Answer 2

Answer:

5

Explanation:

The company with the issue of 200 shares at 10 INR at 1 INR premium

Thus total amount to be paid is 11 INR

The amount paid up is 6 INR  (5+1)

Thus, upon reissue, the company can issue the shares at a maximum discount of 5 INR.

Definition:

• An equity share sometimes referred to as an ordinary share, is a kind of fractional ownership that carries with it the greatest amount of entrepreneurial risk for a trading firm.
• These shareholders have the ability to cast ballots in any organization.

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