Question

Ruby limited invited applications for 1,00,000 shares of ₹10 each at a premium of 30% payable as follows: On Application ₹4 On Allotment ₹5 On First Call ₹2 On Second and Final Call ₹2 The public subscribed for two times the shares that were offered by the company. The directors decided to allot the shares to all the applicants on a pro-rata basis. Santosh who had applied for 6,000 shares, did not pay anything after the Application. Her shares were forfeited after the final call. 50% of the forfeited shares were reissued to Ashok as fully paid in such a manner that ₹1,500 were transferred to Capital Reserve A/c.

How many shares of Santosh were reissued?

विकल्प

• 3,000

• 2,000

• 1,500

• 1,000

Answer 1

1,500

Explanation:

Santosh applied 6,000 → pro-rata 1:2 ⇒ allotted 3,000 shares. She paid nothing after application, so all 3,000 shares were forfeited.

50% of the forfeited shares were reissued” ⇒ reissued = 50% of 3,000 = 1,500 shares.