A Ltd. forfeited 100 equity shares of Rs. 10 each issued at a premium of 20% for the non-payment of final call of Rs. 5 including premium. State the maximum amount of discount at which these shares can be re-issued.

A Ltd. forfeited 100 equity shares of Rs. 10 each issued at a premium of 20% for the non-payment of final call of Rs. 5 including premium. State the maximum amount of discount at which these shares can be re-issued.

Post category:Accountancy
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SOLUTION

These shares can be reissued at a maximum discount of Rs. 7 per share (i.e., Rs. 700).

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