# [CBSE] Q. 43 Solution of Accounting for Share Capital TS Grewal Class 12 (2022-23)

Are you looking for the solution to Question number 43 of the Accounting for Share Capital chapter of TS Grewal Book 2022-23 Edition CBSE Board?

Question – 43

Determine the maximum permissible discount and minimum reissue price that a company can allow at the time of reissue of foreited shares in the following cases:

(i) A share of ₹ 10 originally issued at par on which application and allotment money of ₹ 5 was received.

(ii) A share of ₹ 10 originally issued at a premium of ₹ 1 on which application and allotment money (including premium) of ₹ 5 was received.

(iii) A share of ₹ 10 originally issued at a premium of ₹ 1 on which application and allotment money (excluding premium) of ₹ 5 was received.

[Ans.: Maximum Permissible Discount: (i) ₹ 5 per share; (ii) ₹ 4 per share; (iii) ₹ 5 per share. Minimum Reissue Price: (i) ₹ 5 per share; (ii) ₹ 6 per share; (iii) ₹ 5 per share.]

Solution:-

i) Maximum permissible discount is equal to the amount received before reissue. In this case, ₹ 5 has already been received out of ₹ 10. Thus, this share can be reissued at a minimum of ₹ 5 with a ₹ 5 discount per share.

ii) Maximum permissible discount is equal to the amount received before reissue. In this case, ₹ 4 has already been received out of ₹ 10. Thus, such a share can be reissued at a minimum of ₹ 6 with a maximum ₹ 4 discount per share.

iii) Maximum permissible discount is equal to the amount received before reissue. in this case, ₹ 5 has already been received out of ₹ 10. Thus, such a share can be reissued at a minimum of ₹ 5 with a maximum ₹ 5 discount per share.

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