29. Willow Tree Ltd. issued for subscription 20.000 Equity Shares of 10 each. The issue price was payable 34 per share on application, 5 per share on allotment and 3 per share as first and final cal. The issue was oversubscribed by one time. The company issued shares to the applicants as follows: (i) Applications for 8,000 Equity Shares were rejected. (i) 8.000 Equity Shares were allotted to applicants of 12,000 Equity Shares. (1) 12,000 Equity Shares were allotted to applicants of 20.000 Equity Shares. The amount that the company should receive on allotment and as first and final call will be 352,000 and 60,000 respectively. * 1,00,000 and * 60,000 respectively. 52,000 and 96,000 respectively. d Nil and * 60,000 respectively. ahlo as Annlication a
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Subscribed = 8,000+12,000+20,000 = 40,000 of which 8,000 were rejected and pro-rata allotment made to applicants for 32,000 shares
Application amount retained = 32,000 x 4 = 1,28,000
Actual due on application = 20,000 x 4 = 80,000
Excess Received on application adjusted to allotment a/c = 48,000
Allotment due = 20,000 x 5 = 1,00,000
Allotment money received = Allotment due - Excess Received on application
= 1,00,000 – 48,000
= Rs. 52,000
Due on first & final call = 20,000 x 3
= Rs. 60,000
So the amount that the company should receive on the allotment and the first and final call will be Rs. 52,000 and 60,000 respectively.
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