A share of Rs. 10 on which Rs. 8 was called up was forfeited for non-payment of Rs. 5. This share can be reissued at a minimum price of Rs.
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → 7
Forfeited shares may be reissued at a discount, but the discount cannot exceed the amount already received (forfeited) on those shares. Reissued as fully paid, the lowest price is face value less that amount.
Amount called up = Rs. 8; unpaid = Rs. 5
Amount received and forfeited = Rs. 8 − Rs. 5 = Rs. 3
Maximum discount on reissue = Rs. 3
Minimum reissue price (as fully paid) = Rs. 10 − Rs. 3 = Rs. 7
Rs. 5 would follow from taking the unpaid amount as the permitted discount; the limit is the amount received, not the amount unpaid.
NCERT (2026-27 edition):
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