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Question
Company sends Regret letter for 100 shares and Allotment letter to 25000 shareholders. Application money was ₹ 20 per share. Calculate the amount of application money which company is refunding.
Sum
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Solution
Company send Regret letter for 100 shares for ₹ 20 per share application money received
i.e. only that much amount company will refund.
Amount of refund = No. of shares × Value of per share
= 100 × ₹ 20
= ₹ 2,000
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Chapter 8: Company Accounts - Issue of Shares - Exercise 8.1 (Objective Questions) [Page 341]
