Read the following passage carefully and answer the questions.
X Ltd. issued 30,000 shares to the public having Face value ₹100 at 10% premium. Money is receivable as follows:
Application = ₹40 (including premium)
Allotment = ₹45
First and Final call = Remaining amount
The public applied for 50,000 shares. The company rejected application for 10,000 shares and made a pro rata allotment to the rest of the applicants. A shareholder applying for 400 shares, didn't pay the allotment and call money and his allotted shares were forfeited by the company. Later, the forfeited shares were reissued at ₹80 each as fully paid.
What is the amount of discount per share which is allowed by the company at the time of reissue of forfeited shares?
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → ₹20
Forfeited shares are reissued as fully paid. The buyer pays ₹80 for a share whose face value is ₹100, so the company allows a discount on reissue.
Face value = ₹100
Reissue price = ₹80
Discount per share = ₹100 − ₹80 = ₹20
The premium of ₹10 does not enter here: the reissue price is compared with the face value of the share, not with the issue price.
NCERT (2026-27 edition):
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