Question

Raghav Ltd. forfeited 100 shares of Rs.10 each issued at a premium of 20% for non-payment of the first call of Rs.3 per share and final call of Rs.1 per share. The minimum price per share at which these shares can be reissued will be:

• A. Rs.4
• B. Rs.6
• C. Rs.8
• D. Rs.10

Hint:

The minimum reissue price for forfeited shares must cover the unpaid amount to ensure there is no further liability.

Answer 1

The Correct Option is A

The forfeited shares were originally issued at a premium of 20\%, making the issue price per share: \[ Rs.10 + Rs.2 = Rs.12. \] The shareholder did not pay the first call of Rs.3 and the final call of Rs.1, leaving an unpaid amount: \[ Rs.3 + Rs.1 = Rs.4. \] The amount already paid by the shareholder includes the application and allotment money, including the premium: \[ Rs.12 - Rs.4 = Rs.8. \] For the shares to be reissued, the minimum price must cover the unpaid amount of Rs.4: \[ {Minimum Reissue Price} = Rs.4. \] Conclusion:
The minimum price per share at which the shares can be reissued is \( Rs.4 \).