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Question
DN Ltd. issued 50,000 shares of Rs 10 each at a discount of 10% payable as Rs 2 per share on application Rs 3 on allotment and Rs 2 each on first and final call. Applications were received for 70,000 shares. It was decided that
(a) Refuse allotment to the applicants of 10,000 shares,
(b) Allot 10,000 shares to Mohan who had applied for a similar number, and
(c) Allot the remaining share on a pro-rata basis.
Mohan failed to pay the allotment money and Sohan who belonged to category (c) and was allotted 3,000 shares, paid both the calls with allotment, Calculate the amount received on allotment.
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Solution
|
|
Application Received |
Allotted |
|
|
70,000 Shares |
50,000 Shares |
|
Category A |
10,000 Shares |
Nil (Rejected) |
|
Category B |
10,000 Shares |
10,000 shares |
|
Category C |
50,000 Shares |
40,000 shares |
|
Particulars |
Amount Rs |
|
Allotment money due (50,000 Shares × Rs 3) |
1,50,000 |
|
Less: Received in advance (Pro-rata allotment) (10,000 shares × Rs 2) |
(20,000) |
|
|
1,30,000 |
|
Less: Amount not paid by Mohan (10,000 shares × Rs 3) |
(30,000) |
|
|
1,00,000 |
|
Add: Calls in advance from Sohan (3,000 shares × Rs 4) |
12,000 |
|
Amount received on allotment |
1,12,000 |
|
|
|
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