What maximum amount of discount can be allowed on the re issue of forfeited shares?

1. In case of the forfeited shares were originally issued at par or at premium, then these shares can be reissued with the maximum discount = amount forfeited on the re-issued share.

What is the maximum amount of discount on issue of shares?

There is a cap on the rate of discount. A company cannot issue any shares at more than 10% discount.

What is the minimum price at which forfeited shares can be reissued?

Here is your answer. The Re-issue price of forfeited shares must be at least equal to the difference between the paid up value of Re-issued Shares and the Amount Forfeited on Re-issue Shares. In other words, Re-issue price must not be less than the amount unpaid on Forfeited Shares. Regards.

What is maximum permissible discount at the time of reissue of shares?

But the maximum permissible discount on reissue of shares will be equal to the amount forfeited plus the amount of discount initially allowed on these shares at the time of their original issue.

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What minimum price per share can issue shares?

Explanation: According to the companies act 2013, a company can issue shares @ a min price of 1 rs.

In which account profit on reissue of forfeited shares is transferred?

The part of the gain on forfeiture which pertains to re-issued shares is transferred to capital reserve account. D Ltd. issued 1,00,000 equity shares of Rs 10 each at a premium of Rs. 2 per share.

When surrendered shares are reissued is debited?

If a share is reissued at a loss, on reissue Bank is debited with cash received, Forfeited Shares Account is debited with loss suffered (or discount allowed) and Share Capital Account is credited will the total of the two amounts which is the paid up value of reissued shares.

How do you find the maximum permissible discount?

In case of the forfeited shares were originally issued at discount, then these forfeited shares can be reissued with the maximum discount equal = amount forfeited on the re-issued share + the discount allowed at the time of original issue.

What are discount received?

A discount allowed is when the seller of goods or services grants a payment discount to a buyer. … A discount received is the reverse situation, where the buyer of goods or services is granted a discount by the seller. The examples just noted for a discount allowed also apply to a discount received.

Can right shares be issued at discount?

A rights issue is an invitation to existing shareholders to purchase additional new shares in the company. This type of issue gives existing shareholders securities called rights. With the rights, the shareholder can purchase new shares at a discount to the market price on a stated future date.

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What are forfeited shares?

A forfeited share is a share in a publicly-traded company that the owner loses (or forfeits) by neglecting to live up to any number of purchase requirements.

What is the time limit for allotment of shares?

On passing the resolution for allotment of shares, the allotment of shares must be done within 60 days of receiving the application money for the same. File the forms with ROC: The company must file the Form PAS -3, within 30 days from the allotment of the shares with the Registrar of Companies.