Question

X Ltd. forfeited 200 shares @ Rs.10
each at a premium of Rs.2 per share (
Rs.7 called up) due to non-payment
of allotment money Rs.4 including
premium. Calculate the maximum
amount of discount to be allowed on
re-issue of forfeited shares.​

Answer 1

Answer:

X Ltd. forfeited 200 equity shares of Rs. 10 each, Rs. 8 called-up for non-payment of first call money @ Rs. 2 each. Application money @ Rs. 2, Allotment money @ Rs. 4 per share have already been received by the company. Out of these, 150 shares were reissued at Rs. 7 per share as showing Rs. 8 paid up. On reissue, amount to be transferred to Capital Reserve Account will be rs 750