Question

What is the maximum amount of discount which may be allowed on reissue of shares?

Answer 1

Answer:

Now on reissue of such shares at discount, the maximum discount could be Rs. 35.

Explanation:

At the time of reissue of forfeited shares a discount of Rs 2 per share is allowed so the total amount of discount of Rs 400 is adjusted from the forfeited amount of Rs 600 and the balance amount of Rs 200 is transferred to Capital Reserve A/c being a capital gain.