Plz answer fast.Vibhu was alloted 120 shares of rs.10 per share which he paid only rs.6 of application and allotment(including 3 rs on premium).he failed to pay subsequent calls so his shares were forfeited and reissued at maximum permissible discount. Then What will be the amount of discount allowed on reissue? Will it include the amount of security premium?
The discount allowed on reissue will be amount received on the shares. But it will not include the premium amount. Because Vibhu has paid the premium amount. Even if he has not paid, securities premium a/c will be debited on forfeiture.
In this case, the amount of discount allowed on reissue is Rs. 3.
In this case, the amount of discount allowed on reissue is Rs. 3.