Home › Bihar Board Class 12 (Commerce) › Accountancy › Accounting for Share Capital › Which situation allows a company to issue shares…
Which situation allows a company to issue shares at a discount?
AReissue of forfeited shares
BIssue to company promoters
CFirst public issue of shares
DRights issue to members
Answer & Solution
Correct answer: A. Reissue of forfeited shares
Ordinarily shares cannot be issued at a discount, but forfeited shares may be reissued at one.
Related questions
If only some forfeited shares are reissued, capital reserve gets200 shares of Rs. 100 forfeited for unpaid final call of Rs. 30; 150 reissued at Rs. 60 asProfit on reissue of forfeited shares is finally transferred toOn forfeiture, the amount already paid on the shares is credited toIf the articles are silent, interest on calls in arrears can be charged at most atApart from sweat equity, a company can ordinarily issue shares at a discount only onRs. 5,40,000 is raised by issuing Rs. 100 shares at 20% premium. How many shares?When shares are issued at a premium, the premium is credited to