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Apart from sweat equity, a company can ordinarily issue shares at a discount only on
AReissue of forfeited shares
BFirst issue to the public
CAllotment to vendors
DIssue of bonus shares
Answer & Solution
Correct answer: A. Reissue of forfeited shares
A general ban on discount exists, with reissue of forfeited shares as the main exception.
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 atRs. 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 toWhich entry records receipt of application money?