Skip to main contentSkip to solution

Mona Ltd. has Rs. 5 crores capital divided into equity shares of Rs. 10 each. It decided to setup a new plant in Bihar. For this purpose the company issued 10,000 shares of Rs. 10 each at Rs. 11 per share. The money was payable as follows

Rs. 3 on application

Rs. 4 on allotment - (including premium)

Rs. 4 on first and final call

Applications were received for 12000 shares & the directors made pro-rata allotment Mr. Sharma an applicant for 120 shares could not pay the allotment and call money and Mr. Verma, a holder of 200 shares, failed to pay the call money. All these shares were forfeited out of the forfeited shares, 150 shares (the whole of Mr. Sharma's shares being included) were issued at Rs. 8 per share. Answer the following questions:-

The amount received on allotment was

Solution

✅ Correct Option: 4

Pro-rata: 12,000 applications for 10,000 shares (6:5). Sharma applied for 120, so allotted 120×56=100120 \times \frac{5}{6} = 100 shares; excess application money =20×3=60= 20 \times 3 = 60 adjusted against allotment.

Total allotment due: 10,000×4=40,00010{,}000 \times 4 = 40{,}000

Less: Excess from all applicants: 2,000×3=6,0002{,}000 \times 3 = 6{,}000

Less: Sharma's unpaid net allotment: 400−60=340400 - 60 = 340

Allotment received = 40,000−6,000−340=33,66040{,}000 - 6{,}000 - 340 = 33{,}660.

Keyboard Shortcuts

  • Left arrow: Previous question
  • Right arrow: Next question
  • S key: Jump to solution
  • Q key: Jump to question