Company Accounts

Share Capital

Easy

Comprehension:

Read the following passage and answer the questions

On January 1, 2024, the Director of X Ltd. issued for public subscription 50,000 equity shares of Rs. 10 each at Rs. 12 per share payable, Rs. 5 on application (including premium), Rs. 4 on allotment and the balance on call on May 01, 2024. The issue was closed on February 10, 2024 by which date applications for 70,000 shares were received. Of the cash received Rs. 40,000 was returned and Rs. 60,000 was applied to the amount due on allotment, the balance of which was paid on February 16, 2024. All the shareholders paid the call due on May 01, 2024 with the exception of an allottee of 500 shares. These shares were forfeited on September 29, 2024 and reissued as fully paid at Rs. 8 per share on November 01, 2024. The company, as a matter of policy, does not maintain a calls-in-arrears account.

What is the amount of excess application money credited to share allotment and money refunded on rejected application in totality?

Rs. 40,000

Rs. 60,000

Rs. 1,00,000

Rs. 1,20,000

✅ Correct Option: 3

Applications were received for 70,000 shares but only 50,000 shares were to be allotted.

Application money per share = Rs. 5 (including premium)

Total application money received = 70,000 × Rs. 5 = Rs. 3,50,000

Application money required for 50,000 allotted shares = 50,000 × Rs. 5 = Rs. 2,50,000

Excess application money = Rs. 3,50,000 - Rs. 2,50,000 = Rs. 1,00,000

This excess application money of Rs. 1,00,000 was utilized as follows:

Amount refunded (returned) = Rs. 40,000
Amount adjusted towards allotment = Rs. 60,000

Total = Rs. 40,000 + Rs. 60,000 = Rs. 1,00,000

The question asks for the total of money credited to share allotment (Rs. 60,000) and money refunded (Rs. 40,000), which equals Rs. 1,00,000.

Note: The 20,000 rejected applicants received partial refunds as some of their excess money was adjusted for the allotted shareholders' allotment dues.

2022: 23 Aug Shift 2

Match List - I with List - II.

List - I	List - II
(A) Share forfeiture	(I) Cr. share capital
(B) Shares reissued	(II) Dr. share capital
(C) Excess application money refunded	(III) Dr. Bank A/c
(D) Calls money received	(IV) Cr. Bank A/c

Choose the correct answer from the options given below :

2026: 11 May Shift 2

If company has not received minimum subscription , the company shall forthwith refund the entire subscription amount received. If a delay occurs

2026: 11 May Shift 2

Match the LIST-I with LIST-II

LIST-I		LIST-II
A. Section 43 of Companies Act, 2013	I.	Calls in advance
B. Interest @10% p.a	II.	One person company
C. Section 2(62) of Companies Act, 2013	III.	Preference shares and Equity shares
D. Interest @12% p.a	IV.	Calls in Arrear

Choose the correct answer from the options given below:

2025: 15 May Shift 2

Match List-I with List-II

List-I	List-II
(A) Calls in Advance A/c Dr. To Particular Call A/c	(I) For Interest due on Calls in Advance
(B) Interest on Calls in Advance A/c Dr. To Sundry Shareholder's A/c	(II) For Interest Paid on Calls in Advance
(C) Sundry Shareholder's A/c Dr. To Bank A/c	(III) Calls in advance adjusted with the call money due
(D) Bank A/c Dr. To Calls in Arrears A/c To Interest on Calls in Arrears A/c	(IV) Calls in arrears received with interest

Choose the correct answer from the options given below:

2025: 13 May Shift 2

Which statements are correct-

(A) A company's shares are generally transferable.

(B) Shareholders of a company are liable for the acts of the company.

(D) Paid up capital can exceed called up capital.

Choose the correct answer from the options given below:

2025: 14 May Shift 2

The Profit on reissue of forfeited shares is transferred to :

What is the amount of excess application money credited to share allotment and money refunded on rejected application in totality?

Solution

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