Question

Kaveri Ltd. was registered with an authorised capital of 40,000 equity shares of ₹100 each. It offered 30,000 equity shares to the public at a premium of ₹40 per share. The amount per share was payable as ₹30 on application; ₹70 (including premium) on allotment; and the balance on first and final call. 28,000 shares were subscribed by the public. All calls were made. A shareholder holding 1,000 shares failed to pay the allotment and first and final call money.

Issued Capital will be ______.

Options

• ₹27,30,000

• ₹30,00,000

• ₹42,00,000

• ₹28,00,000

Answer 1

Issued Capital will be ₹30,00,000.

Explanation:

Authorised Capital = 40,000 shares × ₹100 = ₹40,00,000

Shares Offered (Issued) = 30,000 shares

Face Value per Share = ₹100

Premium is not included in Issued Capital, only face value is counted.

Even though only 28,000 shares were subscribed, Issued Capital is based on shares issued, not subscribed.

Issued Capital = 30,000 shares × ₹100

= ₹30,00,000