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.

Subscribed and Fully Paid Capital will be ______.

Options

• ₹28,00,000

• ₹28,30,000

• ₹27,00,000

• ₹27,30,000

Answer 1

Subscribed and Fully Paid Capital will be ₹27,00,000.

Explanation:

Subscribed Shares = 28,000

Face Value per Share = ₹100

One shareholder holding 1,000 shares did not pay allotment and call money, so those shares are not fully paid.

Subscribed and Fully Paid Capital = 27,000 × ₹100

= ₹27,00,000