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.

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

Rs. 1,20,000

Rs. 80,000

Rs. 1,60,000

Rs. 2,40,000

✅ Correct Option: 2

Prorata allotment: 60,000 applications get 40,000 shares (3 : 2 ratio).

Excess application money = (60,000 minus 40,000) times Rs. 4 = 20,000 times 4 = Rs. 80,000, adjusted with allotment.

Question 46

Total applications received are for :

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 :

Solution