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Question : X Ltd. invited applications for 50,000 shares of Rs.10 each at 10% premium, payable on Rs.3 on application, Rs.3 on allotment and balance amount on first and final call Applications were received for 1,20,000 shares and shares were allotted on pro-rata basis The excess money received on application was to be adjusted against allotment only. A shareholder who applied for 6,000 shares, could not pay the call money and his shares were accordingly forfeited.

Question:- Excess application money adjusted against the amount due on allotment is _____.

Option 1: Rs. 3,60,000

Option 2: Rs. 1,20,000

Option 3: Rs. 2,10,000

Option 4: None of these


Team Careers360 6th Jan, 2024
Answer (1)
Team Careers360 13th Jan, 2024

Correct Answer: Rs. 2,10,000


Solution : Answer = Rs. 2,10,000

The excess amount is adjusted at the time of allotment = 70,000 (1,20,000 - 50,000) X Rs.3 = Rs.2,10,000.

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