Question

A company issued 4,000 equity shares of 310 each at par payable as under : On application *3; on allotment 2; on first call 24 and on final call 1 per share. Applications were received for 13,000 shares. Applications for 3,000 shares were rejected and pro-rata allotment was made to the applicants for 10,000 shares. How much amount will be received in cash on first call? Excess application money is adjusted towards amount due on allotment and calls.
(A) 6,000
(B) Nil
(C) 16,000
(D) 10,000​

Answer 1

Answer:

Rs. 6,000

Explanation:

Application money received = 10,000*3 = Rs. 30,000

Application money for 4000 shares = 4,000*3 = Rs. 12,000

Excess money = Rs. 30,000-12,000 = Rs. 18,000

Adjustment for Allotment money = 4,000*2 =Rs. 8,000

Adjustment for first call money = 18,000 - Rs. 8,000 = Rs. 10,000

First Call money due = 4,000* 4= Rs. 16,000

Amount received in first call = Rs. 16,000-Rs. 10,000 = Rs. 6,000