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If a share of face value Rs 10 is issued at Rs 8, this is
AIssue at par
BIssue at premium
CIssue at discount
DBonus issue
Answer & Solution
Correct answer: C. Issue at discount
1. Issue price (Rs 8) is less than face value (Rs 10).
2. The shortfall (Rs 2) is the discount.
3. Under Section 53 of the Companies Act 2013, issue at discount is generally prohibited (except sweat equity).
4. Hence (C) is the term.
_Source: Maharashtra Balbharati Std XII Book-Keeping & Accountancy, Ch 8 "Company Accounts - Issue of Shares", §8.4 ¶§8.4_
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