Question : On 1st April, 2019, amita Ltd. issued 30,000 Equity Shares of Rs. 10 each at a premium of Rs. 4 per share, payable as follows:
Rs. 6 on application (including Rs. 1 premium),
Rs. 2 on allotment (including Rs. 1 premium),
Rs. 3 on first call (including Rs. 1 premium), and
Rs. 3 on second and final call (including Rs. 1 premium).
Applications were received for 45,000 shares, of which applications for 9,000 shares were rejected and their money was refunded. Rest of the applicants were issued shares on pro rata basis and their excess money was adjusted towards allotment.
Hari, to whom 600 shares were allotted, failed to pay the allotment money and his shares were forfeited after allotment. Mohan, who applied for 1,080 shares failed to pay the two calls and on his such failure, his shares were forfeited.
1,200 forfeited shares were reissued as fully paid-up on receipt of Rs. 9 per share, the whole of Mohan's shares being included.
Question:- Amount received on allotment will be:
Option 1: Rs. 60,000
Option 2: Rs. 24,000
Option 3: Rs. 23,520
Option 4: Rs. 36,000
Correct Answer: Rs. 23,520
Solution : Answer = Rs. 23,520
|
Amount received on allotment: |
|
|
Total amount due on allotment (30,000 x Rs. 2) |
60,000 |
|
Less: Excess application money adjusted (6,000 x Rs. 6) |
36.000 24.000 |
|
Less: Amount due but not paid by Hari [WN 1 (b)] |
480 |
|
Net amount received on allotment |
23,520 |
