Question : MCS Ltd. issued 40,000 shares of Rs. 10 each payable as Rs. 2 per share on application, Rs. 4 per share on allotment and the balance in two equal instalments.
Applications were received for 80,000 shares and the allotment was made as follows:
(a) Applicants of 50,000 shares were allotted 30,000 shares.
(b) Applicants of 30,000 shares were allotted 10,000 shares.
Neeraj, to whom 600 shares were allotted from Category (a), failed to pay the allotment money.
The amount that the company should receive on allotment _________.
Option 1: Rs 78,000
Option 2: Rs 79,000
Option 3: Rs 78,400
Option 4: Rs 80,000
Correct Answer: Rs 78,400
Solution :
Answer = Rs 78,400
Amount due but not paid by Neeraj on Allotment:
(a) Number of shares applied by Neeraj = 50,000/30,000 x 600 = 1,000.
(b) Application money received from Neeraj = 1,000x Rs.2 = Rs.2,000.
(c) Application money required as per shares allotted to Neeraj = 600 x Rs.2 = Rs. 1,200.
(d) Surplus application money ( Rs. 2,000 - Rs. 1,200) to be adjusted on allotment = Rs. 800.
(e) Allotment money due from Neeraj = 600 x Rs. 4 = Rs. 2,400.
(f) Allotment money due but not paid by Neeraj = Rs. 2,400 - Rs. 800 = Rs. 1,600.
|
2. Amount Received on Allotment: |
|
|
Total amount due to allotment |
1,60,000 |
|
Less: Excess application money adjusted |
80,000 |
|
80,000 |
|
|
Less: Allotment Money due but not paid by Neeraj (WN 1) |
1,600 |
|
Amount Received on Allotment |
78,400 |
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