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Question
Vandana Ltd. issued 6,000 equity shares of ₹10 each at 10% premium. The issue was fully subscribed. Amount per share was payable as follows:
On application ₹3, on allotment ₹3 (including premium), On first call ₹3 and on final call ₹2. A, a holder of 200 shares paid the entire money along with allotment. The amount received on allotment will be ______.
Options
₹18,000
₹19,000
₹25,000
₹21,000
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Solution
Vandana Ltd. issued 6,000 equity shares of ₹10 each at 10% premium. The issue was fully subscribed. Amount per share was payable as follows:
On application ₹3, on allotment ₹3 (including premium), On first call ₹3 and on final call ₹2. A, a holder of 200 shares paid the entire money along with allotment. The amount received on allotment will be ₹19,000.
Explanation:
Total shares = 6,000
Face value = ₹10
Premium = 10% = ₹1 per share
Issue price = ₹11 per share
6,000 shares × ₹3 = ₹18,000
A holds 200 shares.
Normal payment on allotment = 200 × ₹3 = ₹600
But A paid the entire balance (allotment + first call + final call) along with allotment.
Balance after application = ₹8 per share (₹2 allotment capital + ₹1 premium + ₹3 first call + ₹2 final call)
For 200 shares × ₹8 = ₹1,600
₹600 + ₹1,000 = ₹1,600
Normal Allotment (₹18,000) + Advance from A (₹1,000)
= ₹19,000
