Question

10,000 equity shares of 20 each are issued for public subscription at a premium of 5%. The full amount is payable on application. Application were received fro 20,000 shares and it was decided to reject applications for shares in excess of shares issued.​

Answer 1

Explanation:

premium= 20*5% =1

amount per share = 21

amount on 20,000 shares received= 20,000*21 =

4,20,000

returned money = 10,000*21=2,10,000