Question

'Samta Limited' invited applications for issuing 6,750 equity shares of Rs 10 each. The amount was payable as follows :

On application - Rs 3 per share
On allotment - Rs 5 per share
On first and final call - Rs 2 per share

The issue was fully subscribed. Subhash applied for 250 shares and paid his entire share money with application. Moti applied for 175 shares and paid allotment money also with an application. The amount received with applications was:

(a) Rs 16,750
(b) Rs 16,000
(c) Rs 19,250
(d) Rs 22,875

Answer 1

Rs 22,875

Calculation of amount received with application

Application amount received on 6,750 shares  = 20,250

Subhash paid in advance (250 @ Rs 7) = 1,750

Moti paid in advance (175 @ Rs 5) = 875

 = 22,875