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easyMCQCUET Accountancy 2025 30 May Shift 12026Accountancy
1 mark

The maximum amount of discount allowed on the re-issue of forfeited shares will be equal to:

  1. A
    The amount already called up at the time of forfeiture.
  2. B
    The amount of calls in arrear at the time of forfeiture.
  3. C
    The amount of calls in advance at the time of forfeiture.
  4. D
    The amount already received at the time of forfeiture.

Solution & Step-by-step Explanation

A company can re-issue forfeited shares at a discount, but the total discount granted cannot exceed the financial amount already received/collected from the previous shareholder on those specific shares. This amount corresponds to the credit balance standing in the Share Forfeiture Account.

Practice this question

Try it yourself before checking the explanation above.

The maximum amount of discount allowed on the re-issue of forfeited shares will be equal to:
A
The amount already called up at the time of forfeiture.
B
The amount of calls in arrear at the time of forfeiture.
C
The amount of calls in advance at the time of forfeiture.
D
The amount already received at the time of forfeiture.

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Company AccountsShare CapitalRe-issue Discount

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