Company Accounts

Share Capital

Medium

Raj Ltd. was registered with 70,000 equity shares. They issued 40,000 equity shares @ 10 each payable as follow :

On Application Rs. 4 per share

On Application Rs. 3 per share

and Balance on 2 calls

The issue was over subscribed by 50,000 shares. The directors decided upon making prorata allotment to 60,000 shares while remaining were returned.

Total applications received are for :

90,000 shares

50,000 shares

40,000 shares

60,000 shares

✅ Correct Option: 1

Shares issued = 40,000. Over subscription = 50,000 shares. Total applications received = 40,000 + 50,000 = 90,000 shares.

Question 47

Amount to be returned to the applicants due to non-allotment of shares will be :

Question 48

The portion of capital which the company does not issue to the public is known as :

Question 49

The maximum amount that can be called up on the first call by the company is :

Question 50

The amount to be adjusted with the call of allotment will be :

Solution