Question

Megha Ltd. issued 60,000 shares of ₹ 10 each at 20% premium payable ₹ 3 on application, ₹ 5 (including premium) on allotment and balance as first and final call. Applications were received for 1,05,000 shares. The Directors resolved to allot the shares as follows:

(i) Applicants of 60,000 shares	30,000 shares
(ii) Applicants of 40,000 shares	30,000 shares
(iii) Applicants of 5,000 shares	Nil

Rajan, who had applied for 1,000 shares in category (i) and Rajiv who was allotted 600 shares in category (ii) did not pay the allotment money.

You are required to calculate the amount received on allotment.

Answer 1

Particulars	₹
Total Allotment money due (60,000 shares × ₹ 5 per share)	3,00,000
Less: Excess Application money adjusted on Allotment (WN 1)	1,20,000
	1,80,000
Less: Allotment money not paid by Rajan and Rajiv (WN 2)	3,400
Amount received on Allotment	1,76,600

Working Notes:

1. Excess Application money adjusted on Allotment:                   ₹

Category (i) (60,000 shares – 30,000 shares) × ₹ 3 per share     90,000

Category (ii) (40,000 shares – 30,000 shares) × ₹ 3 per share    30,000

                                                                                                  1,20,000

2. Calculation of Allotment money not paid by Rajan and Rajiv:

(i) Calculation of No. of Shares Allotted to Rajan = `(30,000)/(60,000) xx 1,000 = 500` shares

(ii) Calculation of No. of Shares Applied by Rajiv = `()/() xx 600 = 800` shares

(iii) Calculation of Allotment money not paid by Rajan and Rajiv:

Particulars	Rajan (₹)	Rajiv (₹)
Allotment money due	500 × ₹ 5= ₹ 2,500	600 × ₹ 5= ₹ 3,000
Less: Excess Application money	[(1,000 – 500) × 3] = ₹ 1,500	[(800 – 600) × 3] = ₹ 600
Allotment money not paid	₹ 2,500 – ₹ 1,500 = ₹ 1,000	₹ 3,000 – ₹ 600 = ₹ 2,400

Total Allotment money not received from Rajan and Rajiv = ₹ 1,000 + ₹ 2,400 = ₹ 3,400.