Face value per share = ₹100
Premium = 10% of ₹100 = ₹10
Issue price = ₹100 + ₹10 = ₹110
Money receivable per share:
- Application = ₹40 (including ₹10 premium)
- Allotment = ₹45
- First and Final Call = ₹110 - ₹40 - ₹45 = ₹25
The shareholder who applied for 400 shares received allotment on pro rata basis.
Pro rata ratio = 30,000 shares allotted : 40,000 shares applied (after rejection of 10,000) = 3:4
Shares allotted to this shareholder = 400 × 43 = 300 shares
This shareholder paid only application money and the shares were forfeited.
At the time of reissue:
Reissue price = ₹80 per share (as fully paid up)
Face value = ₹100 per share
Discount allowed = Face value - Reissue price
Discount = ₹100 - ₹80 = ₹20 per share
Note: The discount of ₹20 is within the permissible limit as the forfeited amount is ₹40 per share (application money paid), which is greater than the discount allowed.