A company forfeited 100 equity shares of ₹10 each issued at a premium of 20% for the non-payment of the final call of ₹5 including the premium. What will be the maximum amount of discount at which these shares can be reissued?
Answer & explanation
Correct answer: option 4
The correct answer is option 4- ₹7 per share.
Issue price = 10 + 20% premium
Premium = 10 x 20/100
= 2
Total issue price = 10 +2
= 12
₹5 is not received including premium of ₹2
Received amount = 12-5
= 7
₹7 has been received by the company so the maximum discount can be ₹7.