Question

4,000 shares of ₹ 10 each were forfeited for non-payment of second and final call money of ₹ 2 per share. The minimum amount that the company must collect at the time of reissue of these shares will be :

• A. ₹ 8,000
• B. ₹ 32,000
• C. ₹ 40,000
• D. ₹ 48,000

Hint:

Company cannot reissue shares at a discount more than the forfeited amount. Minimum reissue value = face value – unpaid call.

Answer 1

The Correct Option is B

Share face value is ₹ 10.
Unpaid amount is ₹ 2, resulting in ₹ 8 received before forfeiture.
The minimum reissue price is calculated as: Face value – Unpaid amount = ₹ 10 – ₹ 2 = ₹ 8.
Therefore, the minimum amount to be collected upon reissue is ₹ 8 multiplied by 4,000, totaling ₹ 32,000.