A share of Rs. 10 on which Rs.8 was called up was forfeited for non-payment of Rs.5. This share can be reissued at a minimum price of Rs.

Given Information:

• Face value of share = Rs. 10
• Called up amount = Rs. 8
• Forfeited for non-payment = Rs. 5

Finding amount already paid:

Amount paid before forfeiture = Called up amount - Amount not paid

= Rs. 8 - Rs. 5 = Rs. 3

This Rs. 3 represents the amount forfeited (amount already received by the company from the original shareholder).

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Rule for reissue of forfeited shares:

The discount on reissue cannot exceed the amount already forfeited.

Maximum discount allowed on reissue = Amount forfeited = Rs. 3

Calculating minimum reissue price:

Minimum reissue price = Face value - Maximum discount allowed

= Rs. 10 - Rs. 3 = Rs. 7

The company can reissue this share at Rs. 7 or any price above it. If reissued at Rs. 7, the entire forfeited amount of Rs. 3 will be transferred to Capital Reserve. If reissued at a higher price (say Rs. 9), only Rs. 1 (10-9) discount is utilized, and Rs. 2 from the forfeited amount goes to Capital Reserve.

Answer: Rs. 7 (Option 4)