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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, failed to pay two calls. These were subsequently forfeited after the second and final call.

Question:-  Amount Received at the time of allotment _______.

Option 1: Rs. 1,76,640

Option 2: Rs. 1,86,000

Option 3: Rs. 2,00,000

Option 4: None of the above


Team Careers360 11th Jan, 2024
Answer (1)
Team Careers360 16th Jan, 2024

Correct Answer: Rs. 1,76,640


Solution : Answer = Rs. 1,76,640 

1. Calculation of the amount due but not paid on allotment in case ofAmrit:

 

Rs.

(a) Total number of shares applied by Amrit = 1,600 x 48,000/40,000 = 1,920 shares.

(b) Total money received on application from Amrit (1,920 x  Rs. 2)

3,840

(c) Excess application money [ Rs. 3,840 - (1,600 x  Rs. 2)]

 

640

(d) Total amount due on allotment (1,600 x  Rs. 5)

 

8,000

(e) Amount due but not paid on allotment by Amrit 8,000 -  Rs. 640 (WN 1 (c))]

7,360

2. Calculation of allotment money received later:

 

(a) Total allotment money due (40,000 x Rs. 5)

 

2,00,000

(b) Less: (i) Already received (Excess Application Money) (ii) Amount due but not paid by Amrit (WN 1)

16,000

7,360

23,360

Allotment money received

 

1,76,640

Hence, the correct option is 1.

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