Question

<br />24. Bisneswar Mills Ltd. issued 1,00,000 Equity shares of 100 each at a premium of 19%. The payment was<br />to be made as 20 on appliation, + 40 on allotment lineluding prenium), 7 50 on 1st call and 720<br />final call. Applications were received for 1,10,000 shares. The directors rejected applications for JOS<br />shares on which the moncy received on application, was rourned shares were alloted among the remaining<br />applicants on 100% basis. The directors made both the calls and all money were duly received pass<br />journal and each book entries for the aboye transactions​

Answer 1

As per SEBI guidelines, the amount of application money collected per share should not be less than 25% of the issue price of the share. Here, the shares are issued at Rs 100 each with 20% as premium i.e. issue price is Rs 120 per share. Hence, the minimum amount of application money to be collected per share as per the SEBI Guideline will be 25% of Rs 120 i.e. Rs 30.