Question

EF Ltd. invited applications for issuing 80,000 equity shares of ₹50 each at a premium of 20%. The amount was payable as follows: On Application ₹20 per share (including premium ₹5) On Allotment ₹15 per share (including premium ₹5) On First Call ₹15 per share On Second and Final Call Balance amount Applications for 1,20,000 shares were received. Applications for 20,000 shares were rejected and pro-rata allotment was made to the remaining applicants. Seema, holding 4,000 shares failed to pay the allotment money. Afterwards, the first call was made. Seema paid allotment money along with the first call. Sahaj who had applied for 2,500 shares failed to pay the first call money. Sahaj's shares were forfeited and subsequently 40% shares were reissued to Geeta for ₹38 per share, ₹40 per share paid up. Final call was not made.

Based on above information, you are required to answer the following question:

Amount received on allotment in Cash will be ______.

पर्याय

• ₹11,60,000

• ₹8,00,000

• ₹7,40,000

• ₹7,60,000

Answer 1

Amount received on allotment in Cash will be ₹7,60,000.

Explanation:

1) Shares applied by Seema: `4,000 xx (1,00,000)/(80,000) = 5,000`

Excess application money paid by Seema = (5,000 − 4,000) × ₹20 = ₹20 000

2) 

Amount due from Seema on Allotment = 4,000 × ₹15	60,000
Less: Excess received from her on Application	20,000
Calls in Arrears from Seema	40,000

3) 

Total Amount due on Allotment : 80,000 × ₹15	12,00,000
Less: Excess received on Application	4,00,000
	8,00,000
Less: Calls in Arrears from Seema	40,000
Net amount received on Allotment	7,60,000