The maximum amount of discount on the re-issue of forfeited shares will be:- Option 1: The amount already called up at the time of forfeiture. Option 2: The amount of calls in arrear at the time of forfeiture. Option 3: The amount of calls in advance at the time of forfeiture. Option 4: The amount already received at the time of forfeiture.

Answer: The amount already received at the time of forfeiture. Solution: When shares are forfeited due to non-payment of calls, the company receives the right to re-issue these shares. The key question is: what is the maximum discount that can be given on such re-issue? The company can give a discount up to the amount already received from the original shareholder before forfeiture. This amount sits in the Share Forfeited Account as a credit balance. Understanding with an example: A share of ₹10 is issued where: - ₹8 was called up - ₹5 was actually received (paid by the shareholder) - ₹3 remained unpaid (calls in arrear) → shares were forfeited On re-issue, the maximum discount allowed = ₹5 (the amount already received) This means the shares can be re-issued at minimum ₹3 per share (₹8 called up - ₹5 discount). Why this limit? When re-issued at ₹3, the company receives ₹3 now + ₹5 already received earlier = ₹8 total, which equals the called-up amount. The Share Forfeited Account balance of ₹5 can absorb the discount of ₹5, making the transaction valid. If discount exceeds ₹5, the company would receive less than the called-up amount of ₹8, resulting in capital loss, which is not permitted. Therefore, the maximum discount on re-issue = Amount already received at the time of forfeiture. Correct Option: 4

Company Accounts

Share Capital

Medium

common

The maximum amount of discount on the re-issue of forfeited shares will be:-

The amount already called up at the time of forfeiture.

The amount of calls in arrear at the time of forfeiture.

The amount of calls in advance at the time of forfeiture.

The amount already received at the time of forfeiture.

✅ Correct Option: 4

When shares are forfeited due to non-payment of calls, the company receives the right to re-issue these shares. The key question is: what is the maximum discount that can be given on such re-issue?

The company can give a discount up to the amount already received from the original shareholder before forfeiture. This amount sits in the Share Forfeited Account as a credit balance.

Understanding with an example:

A share of ₹10 is issued where:

₹8 was called up
₹5 was actually received (paid by the shareholder)
₹3 remained unpaid (calls in arrear) → shares were forfeited

On re-issue, the maximum discount allowed = ₹5 (the amount already received)

This means the shares can be re-issued at minimum ₹3 per share (₹8 called up - ₹5 discount).

Why this limit?

When re-issued at ₹3, the company receives ₹3 now + ₹5 already received earlier = ₹8 total, which equals the called-up amount. The Share Forfeited Account balance of ₹5 can absorb the discount of ₹5, making the transaction valid.

If discount exceeds ₹5, the company would receive less than the called-up amount of ₹8, resulting in capital loss, which is not permitted.

Therefore, the maximum discount on re-issue = Amount already received at the time of forfeiture.

Correct Option: 4

2026: 13 May Shift 1

Select the correct statements related to shares and share capital :

(A) Authorized Share Capital and Nominal Share Capital are different from each other.

(B) Equity shares cannot be redeemed during the lifetime of the company.

(D) Equity shares cannot be issued to the public at a discount.

Choose the correct statements from the options given below:

2025: 30 May Shift 1

Match List-I with List-II

List-I	List-II
(A) Under Subscription	(I) Issue of Shares at an amount more than the nominal or par value of shares.
(B) Issue of Shares at a Premium	(II) It is a situation where the number of shares applied for is less than the number for which applications have been invited for subscription.
(C) Over Subscription	(III) The amount so received from the shareholders when shareholders pay a part or the whole of the amount of the calls not yet made.
(D) Calls in Advance	(IV) when applications for more shares of a company are received than the number offered to the public for subscription.

Choose the correct answer from the options given below:

2022: 30 Aug Shift 2

The company issued 20,000 equity shares of Rs. 10 each to vendor. After issuing them the shares the vendor will be considered as:

2025: 3 June Shift 1

From an accounting point of view, arrange the following share capital of the company in the correct sequence:

(A) Subscribed Capital

(B) Authorized Capital

(D) Issued Capital

Choose the correct answer from the options given below:

2025: 26 May Shift 2

Match List-I with List-II

List-I	List-II
(A) Calls in Arrears	(I) Sometimes shareholders pay a part or the whole of the amount of the calls not yet made.
(B) Calls in Advance	(II) When any shareholder fails to pay the amount due on allotment or on any of the calls
(C) Over Subscription	(III) When number of shares applied for is less than the number for which applications have been invited for subscription
(D) Under Subscription	(IV) When applications for more shares of a company are received than the number offered to the public for subscription

Choose the correct answer from the options given below:

2023: 11 June Shift 3

Arrange the following steps in correct sequence with regard to Shares of a company.

(A) Making Calls

(B) Forfeiture of Shares

(D) Calls in Arrears

(E) Reissue of Shares

Choose the correct answer from the options given below :

The maximum amount of discount on the re-issue of forfeited shares will be:-

Solution

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