Question

Alfa Ltd. offered for public subscription 50,000 equity shares of ₹ 10 each at ₹ 110 per share. The entire amount was payable on application. Applications were received for 48,000 shares and allotment was made to all the applicants. The amount received on application will be

Options

• ₹ 52,80,000.

• ₹ 55,00,000.

• ₹ 50,00,000.

• ₹ 48,00,000.

Answer 1

₹ 52,80,000.

Explanation:

Applications were received for 48,000 shares at ₹ 110 per share. Therefore, application money received is:

48,000 × ₹ 110 = ₹ 52,80,000