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mediumMCQCUET Accountancy 2025 30 May Shift 22026Accountancy
1 mark

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

  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 cannot suffer a net loss on the re-issue of forfeited shares. Therefore, the maximum discount it can offer when re-issuing these shares is strictly limited to the absolute amount that has already been received/forfeited from the previous defaulting shareholder.

Practice this question

Try it yourself before checking the explanation above.

The maximum amount of discount on the re-issue of forfeited shares will be:
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 Limit

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