Question : Y Ltd. invited applications for issuing 500, 12% debentures of Rs.100 each at a discount of 5%. These debentures were redeemable after three years at par. Applications for 600 debentures were received. Pro-rata allotment was made to all the applicants assuming that the whole amount was payable with application.
Question:- When excess application money is refunded, Bank Account will be credited by __________.
Option 1: Rs. 10,000
Option 2: Rs. 2,500
Option 3: Rs. 8,500
Option 4: Rs. 9,500
Correct Answer: Rs. 9,500
Solution : Answer = Rs. 9,500
Amount refunded (Rs. 100 X 95) = Rs. 9,500. Hence, the correct option is 4.
Question : Y Ltd. invited applications for issuing 500, 12% debentures of Rs.100 each at a discount of 5%. These debentures were redeemable after three years at par. Applications for 600 debentures were received. Pro-rata allotment was made to all the applicants assuming that the
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