Question : A company invited applications for 50,000 Equity Shares of Rs. 10 each payable as follows:
On application Rs. 3; on allotment Rs. 3; on first and final call Rs. 4.
Applications were received for 1,10,000 shares. It was decided
(i) to refuse allotment to the applicants for 10,000 shares,
(ii) to allot 50% to X who has applied for 20,000 shares,
(iii) to allot in full to Y who has applied for 10,000 shares,
(iv) to allot balance of the available shares on pro-rata basis among the other applicants, and
(v) to utilise excess application money in part payment of allotment and final call.
Question:- Total application money will refund will be:
Option 1: Rs. 60,000
Option 2: Rs. 30,000
Option 3: Rs. 1,50,000
Option 4: Rs. 20,000
Correct Answer: Rs. 30,000
Solution : Answer = Rs. 30,000
STATEMENT SHOWING DETAILS OF SHARES APPLICATION MONEY
Categories
Shares
Application
Disposal of Shares Application Money Received
Applied
Allotted
Money
Share
Calls-in-
Refund
Received
Capital
Allotment
Advance
Rs.
1 (Rejected)
10,000
NIL
30,000
(10,000 x Rs.3)
II X
20,000
60,000
(20,000 x Rs. 3)
(10,000 x Rs. 3)
III Y
IV (Prorata)
70,000
2,10,000
90,000
(Bal.Fig.)
(70,000 x Rs. 3)
(30,000 x Rs. 3)
(2,10,000
- 90,000 - 90,000)
Total
1,10,000
50,000
3,30,000
1,50,000
1,20,000
Hence, the correct option is 2.
(i) to
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