Question

Merak Ltd. forfeited 6,000 equity shares of ₹10 each for non-payment of final call of ₹3 per share. The minimum amount per share at which these shares can be reissued will be:

• A. ₹3
• B. ₹7
• C. ₹10
• D. ₹6

Hint:

When forfeited shares are reissued:

• Amount in Share Forfeiture A/c per share = Amount already received
• Maximum discount allowed = Amount in Share Forfeiture A/c
• Minimum reissue price = Face value - Maximum discount

For this problem, minimum reissue price = ₹10 - ₹7 = ₹3.

Answer 1

The Correct Option is B