Ownclasses

Z. Ltd forfeited 1,000 equity shares of ₹ 10 each for the non-payment of the first call of ₹ 2 per share. The final call of ₹ 3 per share was yet to be made.
Calculate the maximum amount of discount at which these shares can be reissued.

Answer

The maximum amount of discount at which the shares can be re-issued is (3+2 = 5 x 1000 = 5000) ₹ 5,000 (i.e. the credit balance in Share Forfeiture Account)