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Question
Company received excess application for 5000 shares @ ₹4 per share. Applications of 1000 shares were rejected and pro-rata allotment was made. Calculated the amount of application money adjusted with allotment.
Sum
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Solution
| Excess application money received for 5000 shares @ ₹ 4 per share | = ₹ 20,000 |
| Less: Application of 1000 shares rejected and money refunded | = ₹ 4,000 |
| Excess money received to be adjusted with allotment | = ₹ 16,000 |
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Chapter 8: Company Accounts - Issue of Shares - Exercise 8.1 (Objective Questions) [Page 341]
