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?

₹7 per share

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.