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Amount of discount allowed on the reissue of forfeited shares cannot exceed the amount that has:-

  1. A
    not been called-up on forfeited shares at the time of initial issue.
  2. B
    been called-up on forfeited shares at the time of initial issue.
  3. C
    not been received on forfeited shares at the time of initial issue.
  4. D
    been received on forfeited shares at the time of initial issue.

Solution & Step-by-step Explanation

A company can reissue forfeited shares at a discount, but the maximum legal limit of discount allowed on such reissue is strictly capped at the amount already received on these shares at the time of their original issue (the balance sitting inside the Forfeited Shares Account).

Practice this question

Try it yourself before checking the explanation above.

Amount of discount allowed on the reissue of forfeited shares cannot exceed the amount that has:-
A
not been called-up on forfeited shares at the time of initial issue.
B
been called-up on forfeited shares at the time of initial issue.
C
not been received on forfeited shares at the time of initial issue.
D
been received on forfeited shares at the time of initial issue.

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