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Joy Ltd. Issued 1,00,000 Equity Shares of Rs 10 Each. the Amount Was Payable as Follows: Applications for 95,000 Shares Were Received and Shares Were Allotted to All the Applicants. Sonam to Whom 500 Shares Were Allotted Failed to Pay Allotment Money and Gautam Paid His Entire Amount Due Including the Amount Due on First and Final Call on the 750 Shares Allotted to Him Along with Allotment. - Accountancy

Joy Ltd. issued 1,00,000 equity shares of Rs 10 each. The amount was payable as follows:

On application - Rs 3 per share

On allotment - Rs 4 per share

On 1st and final call - balance

Applications for 95,000 shares were received and shares were allotted to all the applicants. Sonam to whom 500 shares were allotted failed to pay allotment money and Gautam paid his entire amount due including the amount due on first and final call on the 750 shares allotted to him along with allotment.

The amount received on allotment was

(a) Rs 3,80,000
(b) Rs 3,78,000
(c) Rs 3,80,250
(d) Rs 4,00,250

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Solution

Rs 3,80,250

Details Rs

Amount due on allotment (95,000 x 4)

  Less: Allotment not received on 500 shares

  Add: First and final call money received on 750 shares (750 x 3)

3,80,000

2,000

2,250

Net Amount Received on Allotment 3,80,250
Concept: Pro-rata Allotment
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