Question

7. O Ltd. issued 10,000 equity shares of 10 each at a premium of 20% payable 4 on
application (including premium), 5 on allotment and the balance on first and final call.
The company received applications for 15,000 shares and allotment was made pro-rata. P,
to whom 3,000 shares were allotted failed to pay the amount due on allotment. All his
shares were forfeited before the call was made. The forfeited shares were reissued to Qat
par. Assuming that no other bank transactions took place, the bank balance of the
company after effecting the above transactions is?​

Answer 1

Answer:

X Ltd. issued 10,000 equity shares of Rs.10 each at a premium of 20% payable Rs.4 on application (including premium), Rs.5 on allotment and the balance on first and final call. The company received applications for 15,000 shares and allotment was made pro-rata. Mr. P, whom 3,000 shares were allotted, failed to pay the amount due on allotment. All his shares were forfeited after the call was made. The forfeited shares were reissued to Mr. Q at par. Assuming that no other bank transactions took place, the bank balance of the company after affecting the above transactions will be