A share of ₹100 was originally issued at a premium of ₹20 on which application and allotment money of ₹60 (including premium) was received. What will be the maximum permissible discount at the time of the reissue of this forfeited share?

₹40

The correct answer is option 1- ₹40

The amount received will be the maximum permissible discount on the reissue of shares.

The amount received excluding premium is 60-20 = ₹40
So, ₹40 will be the maximum permissible discount on the reissue of shares.