Question

Raghav Ltd. forfeited 100 shares of Rs.10 each issued at a premium of 20% for non-payment of the first call of Rs.3 per share and final call of Rs.1 per share. The minimum price per share at which these shares can be reissued will be:

• A. Rs.4
• B. Rs.6
• C. Rs.8
• D. Rs.10

Hint:

The minimum reissue price for forfeited shares must cover the unpaid amount to ensure there is no further liability.

Answer 1

The Correct Option is A

The shares, initially issued at a 20% premium, had an issue price per share of: \[ Rs.10 + Rs.2 = Rs.12. \] The shareholder failed to pay the first call of Rs.3 and the final call of Rs.1, resulting in an unpaid amount: \[ Rs.3 + Rs.1 = Rs.4. \] The amount paid by the shareholder, covering application and allotment money including the premium, is: \[ Rs.12 - Rs.4 = Rs.8. \] To reissue the shares, the minimum price must at least cover the unpaid amount of Rs.4: \[ {Minimum Reissue Price} = Rs.4. \] Conclusion:
The minimum reissue price per share is \( Rs.4 \).