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-
Answers
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) =
= ₹1,12,500
The amount received on the allotment (₹10 including premium )
=₹1,50,000
now, subtract excess application money adjusted and calls in arrears from this amount =
The amount received on the first and final call =
subtracting calls in arrears from this amount =
Amount received on the reissue of 1,200 shares =
∴ The total bank balance of the company = amount on application + amount on allotment + amount on first and final call + amount on the reissue
∴ The balance of Zee Ltd. after affecting the above transactions will be ₹3,78,000.
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