Question

Zee Ltd issued 15,000 equity shares of Rs.20 each at a premium of Rs.5 payable Rs.5 on application, ₹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. Bittoo to whom 1,200 shares were allotted, failed to pay amount due on allotment. All his shares were forfeited after the call was made. The forfeited shares were reissued to Dheeraj at par. Assuming that no other bank transactions took place, the bank balance of the company after the above transactions is:

Answer 1

Explanation:

total amount = 112500 + 103500 + 138000 + 24000 = 378000

bank balance = 378000

Hope u like since there was no other explanation on internet just the answers

Have a great day :)

Answer 2

Following is the calculation for bank balance of Zee ltd:

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

applications received for 22,500 shares

1) amount received on application ( ₹5) = 22,500 * 5

                                                              = ₹1,12,500

2) amount received on allotment (₹10 including premium ) = 15000 * 10

                                                                                             = 1,50,000

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

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

3) amount received on first and final call = 15,000 * 10

                                                                    = 1,50,000

now, subtract calls in arrears from this amount = 1,50,000 - 12,000

                                                                              = 1,38,000

4) amount received on reissue of 1,200 shares = 1200 * 20 = 24,000

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

= 1,12,500 + 1,03,500 + 1,38,000 + 24,000

= 3,78,000