Question : S Ltd. issued 40,000 Shares of Rs. 10 each, for Rs. 12 each payable as under:
On application Rs. 2 per share, on allotment Rs. 5 per share (including premium), on first call Rs. 2 per share and on second and final call Rs. 3 per share.
Applications were received for 60,000 shares. Allotment was made on pro rata basis to the applicants for 48,000 shares, remaining applications being refused. Money overpaid on application was applied towards amount due on allotment.
A, to whom 1,600 shares were allotted, failed to pay the allotment money and B, to whom
2,000 shares were allotted, but failed to pay two calls. These were subsequently forfeited after the second and final call.
Question:- Excess money adjusted against amount due on the allotment is ____.
Option 1: Rs. 16,000
Option 2: Rs. 40,000
Option 3: Rs. 24,000
Option 4: None of these
Correct Answer: Rs. 16,000
Solution :
Answer = Rs. 16,000
Rs.16,000 (8000 shares X application money Rs. 2).
Hence, the correct option is 1.
