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Question
Z Ltd. forfeited 1000 equity shares of Rs 10 each for the non-payment of the final call of Rs 2 per share. Calculate the maximum amount of discount at which these shares can be reissued.
Solution
The maximum discount at which these shares can be re-issued is the credit balance in the Share Forfeiture A/c i.e. Rs 8,000 (1,000 × 8).
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