Purna Ltd. forfeited 16,000 equity shares of Rs. 200 each issued at a premium of 10% for non-payment of first and final call of Rs. 60 per share. The minimum amount at which all forfeited shares can be reissued will be :-

Amount received towards capital per share $= 200 - 60 = 140$.

Total forfeited amount $= 16,000 \times 140 = 22,40,000$, which is the maximum discount allowed on reissue.

Total face value $= 16,000 \times 200 = 32,00,000$.

Minimum reissue price $= 32,00,000 - 22,40,000 = 9,60,000$, that is $60$ per share.

[NOTE: You don't subtract the Rs. 20 premium from the Rs. 140 because premium was never part of that Rs. 140 in the first place. It's a separate account entirely. Rs. 140 is purely the face value portion collected, and Rs. 20 is a separate premium collection sitting untouched in its own account.

If you subtracted premium again to get Rs. 120, that would mean treating the Rs. 20 as if it were still owed on the face value, which double counts it since it was never part of the Rs. 200 to begin with.]