Question

A company issued 4,000 equity shares of rupees 50 each at par payable as under: On application 20%, on allotment 40% ; on first call 10% ; on final call -balance Applications were received for 10,000 shares. Allotment was made pro-rata . How much amount will be received in cash on allotment?

Answer 1

Answer:

80000

Explanation:

40% of rs 50 =20 rs

therefore allotment cash received is 4000×20

Answer 2

Given:

no. of equity shares = 4000

Price per share = Rs. 50

Application - 20%

Allotment - 40%

First call- 10%

Final call - balance.

Received application for 10000 shares.

To find

The amount of money received on the allotment

Solution:

no. of equity shares = 4000

Price per share = Rs. 50

Application - 20%

Allotment - 40%

First call- 10%

Final call - balance.

since the final allotment will be on the original 4000 shares the value for the amount of money received on the allotment will also be calculated on the original number of shares that is 4000 shares.

$= 40\% \times 50$

$= 20$

therefore the value of an amount to be received on the allotment is Rs20.

$= 20 \times 4000$

$= 80000$

The total amount received in cash during the allotment is Rs. 80,000