Question

M Ltd. forfeited 5,000 equity shares of ₹ 10 each issued at a premium of 10% for non-payment of final call of ₹ 2 per share. The minimum amount at which these shares can be reissued as fully paid up will be ______.

विकल्प

• ₹ 5,000

• ₹ 10,000

• ₹ 12,000

• ₹ 50,000

Answer 1

M Ltd. forfeited 5,000 equity shares of ₹ 10 each issued at a premium of 10% for non-payment of final call of ₹ 2 per share. The minimum amount at which these shares can be reissued as fully paid up will be ₹ 10,000.

Explanation:

Using forfeited shares requires a minimum price that covers the unpaid amount. This is the calculation: 

1. Shares have a nominal value of ₹ 10.
2. Final Call Unpaid: ₹ 2/share.
3. Shares forfeited: 5,000.