Question

define pro rata and maximum discount permissable​

Answer 1

Answer:

1. Pro-rata : When applications are alloted in proportion of shares applied for it is called pro-rata allotment
2. Maximum discount :A company forfeited shares of Rs. 100each. Rs. 35 has been paid by the shareholder Rs. 65 is the unpaid amount. Now on reissue of such shares at discount, the maximum discount could be Rs. 35.