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Question:

ZLtd. forfeited 1,000 equity shares of Rs.10 each for the non-payment of the first call of Rs.2 per share. The final call of Rs.3 per share was yet to be made. 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.5,000 (1,000 × 5).