Star Ltd. issued 10,000 shares of ₹ 10 each, payable as ₹ 4 on application, ₹ 3 on allotment, ₹ 2 on first call and balance on second and final call. 500 shares were forfeited, Calculate the ‘Maximum Permissible Discount’ and Minimum Reissue Price

Star Ltd. issued 10,000 shares of ₹ 10 each, payable as ₹ 4 on application, ₹ 3 on allotment, ₹ 2 on first call and balance on second and final call. 500 shares were forfeited, Calculate the ‘Maximum Permissible Discount’ and Minimum Reissue Price’ on reissue on each of the following cases, if the reissued shares are fully paid-up:

Case 1. If shares were forfeited for non-payment of second and final call.

Case 2. If shares were forfeited for non-payment of First Call and Second and Final Call.

Case 3. If shares were forfeited for non-payment of Allotment, First Call and Second and Final Call.

Case 4. If shares were forfeited for non-payment of Allotment and First Call. Second and Final Call is not yet made.

[Ans.:

Case 1: Maximum Permissible Discount – ₹ 9 and Minimum Reissue Price ₹ 1;

Case 2; Maximum Permissible Discount – ₹ 7 and Minimum Reissue Price ₹ 3;

Case 3: Maximum Permissible Discount – ₹ 4 and Minimum Reissue Price ₹ 6;

Case 4: Maximum Permissible Discount – ₹ 4 and Minimum Reissue Price ₹ 6.]