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CA Foundation Exam  >  CA Foundation Questions  >  X was issued 100 shares of Rs. 10 each at a p... Start Learning for Free
X was issued 100 shares of Rs. 10 each at a premium of Re.1, he paid application money and allotment money which in total amounted to Rs. 5 (excluding premium) and failed to pay the balance call money of Rs. 5. Find the maximum discount that can be given at the time reissue of shares: 
  • a)
    Rs. 4 per shares 
  • b)
    Rs. 5 per share
  • c)
    Rs. 2 per share 
  • d)
    Rs. 6 per share 
Correct answer is option 'B'. Can you explain this answer?
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Most Upvoted Answer
X was issued 100 shares of Rs. 10 each at a premium of Re.1, he paid a...
Total price of per share= 5+1(as security premium)+5(as call money) = 11
Paid by X is 5+1(as security premium)= 6
Maximum discount can be givem = 11- 6= 5
Correct option is 'B'
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X was issued 100 shares of Rs. 10 each at a premium of Re.1, he paid a...
Given:
X was issued 100 shares of Rs. 10 each at a premium of Re.1.
He paid application money and allotment money which in total amounted to Rs. 5 (excluding premium).
He failed to pay the balance call money of Rs. 5.

To Find:
The maximum discount that can be given at the time of reissue of shares.

Solution:
To find the maximum discount that can be given at the time of reissue of shares, we need to calculate the total amount paid by X for the shares and subtract it from the total face value of the shares.

Calculation:
1. Face value of 100 shares = Rs. 10 each
Total face value = 100 x 10 = Rs. 1000

2. Premium on 100 shares = Re. 1 each
Total premium = 100 x 1 = Rs. 100

3. Application money + Allotment money = Rs. 5 (excluding premium)
Let the application money be x and the allotment money be y.
So, x + y = 5

4. The balance call money not paid = Rs. 5

5. Total amount paid by X for the shares = Application money + Allotment money + Premium
Total amount paid = x + y + 100 = x + y + 100

6. The maximum discount that can be given at the time of reissue of shares = Total face value - Total amount paid
Maximum discount = (1000 + 100) - (x + y + 100)
Maximum discount = 1100 - (x + y + 100)
Maximum discount = 1000 - (x + y)

7. We need to find the maximum discount, so we need to minimize the value of (x + y).

8. Given that x + y = 5, we need to find the minimum value of (x + y) such that it is less than or equal to 5.

9. The minimum value of (x + y) is 5 when x = 0 and y = 5.

10. Substituting the values of x = 0 and y = 5 in the equation for maximum discount:
Maximum discount = 1000 - (0 + 5)
Maximum discount = 1000 - 5
Maximum discount = 995

Therefore, the maximum discount that can be given at the time of reissue of shares is Rs. 995.

Conclusion:
The maximum discount that can be given at the time of reissue of shares is Rs. 995.
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D Ltd. issued 2,00,000 shares of Rs.100 each at a premium of Rs.20 per share payable as follows :On application Rs.20On allotment Rs.50 (including premium)On first call Rs.30On second and final call Rs.20Applications were received for 3,00,000 shares and pro rata allotment was made to applicants of 2,40,000 shares. Money excess received on application was employed on account of sum due on allotment as part of share capital. E, to whom 4,000 shares were allotted, failed to pay the allotment money and on his subsequent failure to pay the first call, his shares were forfeited and F, the holder of 6,000 shares failed to pay the two calls and his shares were forfeited after the second call. Of the forfeited shares, 8,000 shares were reissued to G at a discount of 10%, the whole of Es forfeited shares being reissued.Q.Total amount paid by F = ________.

D Ltd. issued 2,00,000 shares of Rs.100 each at a premium of Rs.20 per share payable as follows :On application Rs.20On allotment Rs.50 (including premium)On first call Rs.30On second and final call Rs.20Applications were received for 3,00,000 shares and pro rata allotment was made to applicants of 2,40,000 shares. Money excess received on application was employed on account of sum due on allotment as part of share capital. E, to whom 4,000 shares were allotted, failed to pay the allotment money and on his subsequent failure to pay the first call, his shares were forfeited and F, the holder of 6,000 shares failed to pay the two calls and his shares were forfeited after the second call. Of the forfeited shares, 8,000 shares were reissued to G at a discount of 10%, the whole of Es forfeited shares being reissued.Q.Amount transferred to Share forfeiture account at the time of forfeiting Es shares = _________.

D Ltd. issued 2,00,000 shares of Rs.100 each at a premium of Rs.20 per share payable as follows :On application Rs.20On allotment Rs.50 (including premium)On first call Rs.30On second and final call Rs.20Applications were received for 3,00,000 shares and pro rata allotment was made to applicants of 2,40,000 shares. Money excess received on application was employed on account of sum due on allotment as part of share capital. E, to whom 4,000 shares were allotted, failed to pay the allotment money and on his subsequent failure to pay the first call, his shares were forfeited and F, the holder of 6,000 shares failed to pay the two calls and his shares were forfeited after the second call. Of the forfeited shares, 8,000 shares were reissued to G at a discount of 10%, the whole of Es forfeited shares being reissued.Q.Total amount paid by G = __________.

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X was issued 100 shares of Rs. 10 each at a premium of Re.1, he paid application money and allotment money which in total amounted to Rs. 5 (excluding premium) and failed to pay the balance call money of Rs. 5. Find the maximum discount that can be given at the time reissue of shares:a)Rs. 4 per sharesb)Rs. 5 per sharec)Rs. 2 per shared)Rs. 6 per shareCorrect answer is option 'B'. Can you explain this answer?
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