Question

Sugandh Ltd. issued 60,000 shares of ₹ 10 each at a premium of ₹ 2 per share payable as ₹ 3 on application, ₹ 5(including premium) on allotment and the balance on first and final call. Applications were received for 92,000 shares. The Directors resolved to allot as:
Mohan, who had applied for 800 shares in Category
(i) and Sohan, who was allotted 600 shares in Category
(ii) failed to pay the allotment money. Calculate amount received on allotment.

Answer 1

Issued share                      60,000

  less: Applied shares      92000

Over subscribed shares:  32,000

Payable as:

On Application                     3

On Allotment                        5

On first call and final call    5

Total(10+2)                            12

Money received on application (800 * 3) = 2400

less: Application money adjusted to share capital 1800

Excess money on application 600

Allotment due on 600 shares (600*5) =3000

less: adjustment of excess money on application 600

Call in arrears by mohan 2,400

No. of shares applied by mohan = $50000/30000*600$ = 1000 shares

Money received on application (1,000*3) 3000

less : Application money adjusted to share capital (600*3) = 1800

Excess money on application = 1200

Allotment due on 600 shares(600*5)= 3000

Less: Excess application money adjusted on allotment 1200

Call in arrears by sohan = 1800

Allotment due on 60000 shares (60,000*5) = 3,00,000

Less: Excess application money adjusted on allotment 90,000

2,10,000

Less: call in arrears by mohan = 2400

less: call in arrears by sohan = 1800

Money received in allotment = 2,05, 800

Answer 2

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