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:

  • A share of ₹ 10 originaly issued at par on which application and allotment money of ₹ 5 was received.
  • A share of ₹ 10 originally issued at a premium of ₹ 1 on which application and allotment money (including premium) of ₹ 5 was received.
  • A share of ₹ 10 originally issued at a premium of ₹ 1 on which application and allotment money (exluding premium) of ₹ 5 was received.

Solution :