Question

1,00,000 equity shares of Rs. 10 each are issued at a discount of 10% to redeem the preference shares, the proceeds of a fresh issue under Section 80 is _______.

• A. Rs. 10,00,000
• B. Rs. 9,00,000
• C. Rs. 90,000
• D. nil

Answer 1

The correct option is C Rs. 90,000

b'1,00,000 equity shares of Rs. 10 each at a discount 10% [1,00,00, x 10% = 1,000]

1,00,000 - 1,000 = 90,000.

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