58 :- Determine the maximum permissible discount and minimum reissue price that a company can allow at the time of reissue of forfeited shares in the following cases :
(i) A share of Rs 10 originally issued at par on which application and allotment money of Rs 5 was received.
(ii) A share of Rs 10 originally issued at a premium of Rs 1 on which application and allotment money (including premium) of Rs 5 was received.
(iii) A share of Rs 10 originally issued at a premium of Rs 1 on which application and allotment money (including premium) of Rs 5 was received.
Solution :-
(i) Maximum permissible discount is equal to the amount received before reissue. In this case, Rs 5 has already been received out of Rs 10. Thus, this share can be reissued at a minimum of Rs 5 with a Rs 5 discount per share.
(ii) Maximum permissible discount is equal to the amount received before reissue. In this case, Rs 4 has already been received out of Rs 10. Thus, such a share can be reissued at a minimum of Rs 6 with a maximum Rs 4 discount per share.
(iii) Maximum permissible discount is equal to the amount received before reissue. in this case, Rs 5 has already been received out of Rs 10. Thus, such a share can be reissued at a minimum of Rs 5 with a maximum Rs 5 discount per share.