Advertisements
Advertisements
Question
A company issued 20,000 equity shares of ₹10 each at par payable as under: On application ₹3; on allotment ₹2; on first call ₹4 and on final call ₹1 per share.
Applications were received for 65,000 shares. Applications for 15,000 were rejected and pro-rata allotment was made to the applicants for 50,000 shares. How much amount will be received in cash on first call? Excess application money is adjusted towards amount due on allotment and calls.
Options
₹80,000
₹50,000
₹30,000
Nil
MCQ
Advertisements
Solution
₹30,000
Explanaion:
Applicants for 50,000 shares have been allotted 20,000 shares.
| ₹ | |
| Excess Application Money = 30,000 × ₹3 | 90,000 |
| Less: Amount adjusted on allotment: 20,000 × ₹2 | (40,000) |
| Balance to be adjusted against first call | 50,000 |
| Amount due on first call: 20,000 × ₹4 | 80,000 |
| Net amount to be received on First Call | 30,000 |
shaalaa.com
Is there an error in this question or solution?
