A share of \rupee100 on which \rupee80 is received is forfeited for non-payment of final call of \rupee20. The minimum price at which this share can be reissued is:

Question

Alfa Ltd. offered for public subscription 50,000 equity shares of ₹ 10 each at ₹ 110 per share. The entire amount was payable on application. Applications were received for 48,000 shares and allotment was made to all the applicants. The amount received on application will be:

Answer 1

Section 47 of the Companies Act dictates that reissued forfeited shares must be priced at a minimum equal to the outstanding balance per share. The outstanding balance for these shares is \rupee20. Consequently, the lowest reissue price permissible for these shares is \rupee20.

A share of \rupee100 on which \rupee80 is received is forfeited for non-payment of final call of \rupee20. The minimum price at which this share can be reissued is:

Show Hint

The Correct Option is D

Solution and Explanation

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