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Questions
Sugandh Ltd. issued 60,000 shares of ₹ 10 each at a premium of ₹ 2 per share payable as ₹ 3 on application, ₹ 5 (including premium) on allotment and the balance on first and final call. Applications were received for 92,000 shares. The Directors resolved to allot as
| (i) | Applicants of 40,000 shares | 30,000 shares, |
| (ii) | Applicants of 50,000 shares | 30,000 shares, |
| (iii) | Applicants of 2,000 shares | Nil. |
Mohan, who had applied for 800 shares in Category
(i) and Sohan, who was allotted 600 shares in Category
(ii) failed to pay the allotment money. Calculate amount received on allotment.
Sugandh Ltd. issued 60,000 shares of ₹ 10 each at a premium of ₹ 2 per share payable as ₹ 3 on application, ₹ 5 (including premium) on allotment and the balance on first and final call. Applications were received for ₹ 2,76,000 shares. It was resolved to allot as follows:
| (i) | Applicants of 40,000 shares | 30,000 shares, |
| (ii) | Applicants of 50,000 shares | 30,000 shares, |
| (iii) | Applicants of 2,000 shares | Nil. |
Mohan, who had applied for 800 shares in Category
(i) and Sohan, who was allotted 600 shares in Category
(ii) failed to pay the allotment money.
Calculate amount received on allotment.
[Hint: Shares applied are 92,000 (₹ 2,76,000 ÷ 3.]
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Solution
Application money received: ₹ 2,76,000
Application money per share: ₹ 3
Therefore, shares applied for:
`(2,76,000)/3 = 92,000` shares
1. Excess Application Money Adjusted
Category (i):
40,000 shares applied → 30,000 shares allotted
(40,000 − 30,000) × ₹ 3 = ₹ 30,000
Category (ii):
50,000 shares applied → 30,000 shares allotted
(50,000 − 30,000) × ₹ 3 = ₹ 60,000
Total excess application money adjusted:
₹ 30,000 + ₹ 60,000 = ₹ 90,000
2. Allotment Money Due
60,000 × ₹ 5 = ₹ 3,00,000
After adjustment of excess application money:
₹ 3,00,000 − ₹ 90,000 = ₹ 2,10,000
3. Mohan's Unpaid Allotment
In Category (i), pro rata ratio:
40,000 : 30,000 = 4 : 3
Mohan applied for 800 shares, therefore shares allotted:
`800 xx 3/4 = 600` shares
Allotment due:
600 × ₹ 5 = ₹ 3,000
Excess application money:
(800 − 600) × ₹ 3 = ₹ 600
Amount not received from Mohan:
₹ 3,000 − ₹ 600 = ₹ 2,400
4. Sohan's Unpaid Allotment
In Category (ii), ratio:
50,000 : 30,000 = 5 : 3
Sohan was allotted 600 shares, hence he had applied for:
`600 xx 5/3 = 1,000` shares
Excess application money:
(1,000 − 600) × ₹ 3 = ₹ 1,200
Allotment due:
600 × ₹ 5 = ₹ 3,000
Amount not received from Sohan:
₹ 3,000 − ₹ 1,200 = ₹ 1,800
Amount Received on Allotment:
₹ 2,10,000 − ₹ 2,400 − ₹ 1,800
= ₹ 2,05,800
