Question:
4,000 shares of ₹ 10 each were forfeited for non-payment of second and final call money of ₹ 2 per share. The minimum amount that the company must collect at the time of reissue of these shares will be :
4,000 shares of ₹ 10 each were forfeited for non-payment of second and final call money of ₹ 2 per share. The minimum amount that the company must collect at the time of reissue of these shares will be :
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Company cannot reissue shares at a discount more than the forfeited amount. Minimum reissue value = face value – unpaid call.
Updated On: Jul 4, 2025
- ₹ 8,000
- ₹ 32,000
- ₹ 40,000
- ₹ 48,000
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The Correct Option is B
Solution and Explanation
Face value per share = ₹ 10
Unpaid = ₹ 2 → Amount received before forfeiture = ₹ 8
Minimum reissue price = Face value – Amount unpaid = ₹ 10 – ₹ 2 = ₹ 8 So, minimum amount to collect on reissue = ₹ 8 × 4,000 = ₹ 32,000
Unpaid = ₹ 2 → Amount received before forfeiture = ₹ 8
Minimum reissue price = Face value – Amount unpaid = ₹ 10 – ₹ 2 = ₹ 8 So, minimum amount to collect on reissue = ₹ 8 × 4,000 = ₹ 32,000
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