Question

VBT Ltd foeited 2,000 shares of 10 each, fully called up, on which

application money of 3 has been paid. Out of these 500 shares were

reissued and 500 has been transferred to capital reserve. Calculate the rate at

which these shares were reissued.

(a) 10 Per share (b) 9 Per share

(c) 8 Per share (d) 7 Per share​

Answer 1

Answer:

C.8 per share

hope it's help you

Answer 2

Option (d). The rate of the reissue of shares is ₹7 per share.

Explanation:

Given: 2,000 shares of ₹10 each were forfeited.

           The amount received: 3 (application money)

           Shares that were reissued = 500 shares.

Find: the rate of the reissue of shares.

Solution:

• Sometimes, when the shares are issued, the shareholders are not able to pay the total amount required on the shares they hold.

• The company forfeits these shares, which means cancellation of shares, and the title of the shareholder holding those shares is dissolved.

• The company may choose to sell these forfeited shares. This sale of forfeited shares is called a "re-issue of shares."

• The rate at which these shares are reissued is determined by the amount that was previously paid by the original shareholder.

• The rate of the reissue of shares = total value of shares minus the amount already received on shares = 10-3 = ₹7 per share.

• VBT Ltd. will reissue the shares at the rate of ₹7 per share.