Question

The amount of discount on re-issue of forfeited shares cannot exceed



5% of the face value

10% of the face value

The amount received on forfeited shares

The amount not received on forfeited shares​

Answer 1

Answer:

The amount of discount on reissue of forfeited shares Cannot exceed

Forfeited shares can be reissued as fully paid at a par, premium or discount. In this, it may be noted that the amount of discount allowed cannot exceed the amount that had been received on forfeited shares at the time of initial issue. ... On allotment Rs 4 per share.