Question

Zee Lid. issued 15,000 equity shares of Rs 20 each at a premium of Rs 5 payable Rs 5 on application,
Rs 10 on allotment (including premium) and the balance on First and final call. The company received applications for 22,500 shares and Allotment was made pro-rata. P
to whom 1200 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 O
at par Assuming that no other transactions took place the bank balance of the company after affecting the above transactions-

Answer 1

The answer to this question will be ₹3,78,000.

Given,

Zee Lid. issued 15,000 equity shares of Rs 20 each at a premium of Rs 5 payable Rs 5 on application, Rs 10 on the allotment (including premium), and the balance on the First and final call. The company received applications for 22,500 shares and Allotment was made pro-rata. P to whom 1200 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 O at par.

To Find,

The bank balance of the company after affecting the above transactions.

Solution,

The question could be solved using the following steps.

Shares issued -  15,000 @ ₹20 each at a premium of ₹5

applications received for 22,500 shares

The amount received on application ( ₹5) = $22,500 \times 5= 1,12,500$

                                                             = ₹1,12,500

The amount received on the allotment (₹10 including premium )

$15000 \times 10=1,50,000$

                                =₹1,50,000

now, subtract excess application money adjusted and calls in arrears from this amount =

$1,50,000 - 37,500 - 9000 = 1,03,500$

The amount received on the first and final call = $15,000 \times 10=1,50,000$

subtracting calls in arrears from this amount = $1,50,000 - 12,000 = 1,38,000$

Amount received on the reissue of 1,200 shares = $1200 \times 20 = 24,000$

∴ The total bank balance of the company = amount on application + amount on allotment + amount on first and final call + amount on the reissue

$= 1,12,500 + 1,03,500 + 1,38,000 + 24,000= 3,78,000$

∴ The balance of Zee Ltd. after affecting the above transactions will be ₹3,78,000.

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