Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Accounting for Shares

Question:

EFG Ltd. invited applications for 10000 shares of ₹100 each at a premium of 10 each which is payable as follows-
Application - ₹50
Allotment - ₹35 including premium
Call - ₹25
Applications for 15000 shares is received by the company. The company rejected the applications for 2500 shares and made pro-rata on the remaining applicants. Mr. A shareholder who is allotted 400 shares failed to pay the allotment and call money due to which the company forfeited his shares and reissued at ₹105 per share.

How many shares are applied by the shareholder named A?

Options:

450

500

600

550

Correct Answer:

500

Explanation:

Who allotted 10000 shares applied for 12500 shares
Shares allotted to A = 400
Shares applied by A = 12500/10000 x 400
                                = 125/100 x 400
                                = 500