CUET Preparation Today
What will be the allowed amount of discount on the re-issue of shares? |
10% of the issue price Up to the amount of forfeited money Could not issue a discount None of these |
Up to the amount of forfeited money |
The correct answer is option 2- Up to the amount of forfeited money. Forfeited shares may be reissued as fully paid at a par, premium, discount. In this context, it may be noted that the amount of discount allowed cannot exceed the amount that had been received on forfeited shares at the time of initial issue, and that the discount allowed on reissue of forfeited shares should be debited to the ‘Forfeited Share Account’. |
