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Standard XII

Accountancy

Journal Entries for Re-Issue of Shares

A company for...

Question

A company forfeited shares of Rs. 100 each. Rs. 35 has been paid by the shareholder Rs. 65 is the unpaid amount. Now on reissue of such shares at discount, how much could be the maximum discount?

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Solution

The correct option is B
35

The amount received i.e. 35 is to be transferred to share forfeiture account.
And the loss or the discount in the value of re-issue cannot exceed the balance in the share forfeiture account
So, the maximum discount = Rs. 35

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A company forfeited shares of Rs. 100 each. Rs. 35 has been paid by the shareholder Rs. 65 is the unpaid amount. Now on reissue of such shares at discount, how much could be the maximum discount?

The correct option is B 35 The amount received i.e. 35 is to be transferred to share forfeiture account. And the loss or the discount in the value of re-issue cannot exceed the balance in the share forfeiture account So, the maximum discount = Rs. 35

The correct option is B
35

The amount received i.e. 35 is to be transferred to share forfeiture account.
And the loss or the discount in the value of re-issue cannot exceed the balance in the share forfeiture account
So, the maximum discount = Rs. 35