Question

Kaveri Ltd. was registered with an authorised capital of 40,000 equity shares of ₹100 each. It offered 30,000 equity shares to the public at a premium of ₹40 per share. The amount per share was payable as ₹30 on application; ₹70 (including premium) on allotment; and the balance on first and final call. 28,000 shares were subscribed by the public. All calls were made. A shareholder holding 1,000 shares failed to pay the allotment and first and final call money.

Balance of Securities Premium Reserve shown in Balance Sheet will be ______.

विकल्प

• ₹12,00,000

• ₹10,80,000

• ₹11,60,000

• ₹11,20,000

Answer 1

Balance of Securities Premium Reserve shown in Balance Sheet will be ₹10,80,000.

Explanation:

Shares Subscribed = 28,000

Securities Premium per Share = ₹40

1,000 shares' holder did not pay the allotment, which includes the premium. So premium was received only on 27,000 shares.

27,000 shares × ₹40

= ₹10,80,000