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Standard XII

Accountancy

Journal Entries for Re-Issue of Shares

A company for...

Question

A company forfeited shares of X of Rs.100 each out of which X has paid Rs.35 & Rs.65 is unpaid. is the maximum discount at the time of reissue.

Rs. 10

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Rs. 100

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Rs. 65

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Rs. 35

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Solution

The correct option is D Rs. 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 X of Rs.100 each out of which X has paid Rs.35 & Rs.65 is unpaid. is the maximum discount at the time of reissue.

The correct option is D Rs. 35The 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 D Rs. 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