A company has forfeited $400$ shares of $R s . 10$ each. The shareholder has paid $R s . 3$ per share on these shares and balance of $R s . 7$ has not been paid by him. Company can reissue these on maximum discount of

R s . 2

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R s . 7

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R s . 3

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R s . 4

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Solution

The correct option is C $R s . 3$
On reissue of forfeited shares maximum discount which can be allowed by company is the amount received on these shares and credited to share forfeited account. In this case, $R s . 3$ have been received. Therefore, maximum discount which can be allowed is $R s . 3$ . Hence, correct answer is (c).

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A company has forfeited 400 shares of Rs.10 each. The shareholder has paid Rs.3 per share on these shares and balance of Rs.7 has not been paid by him. Company can reissue these on maximum discount of

A company has forfeited $400$ shares of $R s . 10$ each. The shareholder has paid $R s . 3$ per share on these shares and balance of $R s . 7$ has not been paid by him. Company can reissue these on maximum discount of