XYZ ltd. issued 1,000 shares of ₹10 each, at 10% premium, payable as follows :
Application - ₹5
Allotment - ₹ 3 (including premium)
First and final call - Balance
Calculate the amount received on first and final call.
Answer & explanation
Correct answer: option 2
The correct answer is option 2- ₹3,000.
Face value per share = ₹10
Premium per share = 10% of ₹ 10
= ₹1
Application money per share = ₹5
Allotment money per share = ₹3 (including premium)
Amount received on first and final call = Total payment per share - (Application money + Allotment money)
Total payment per share = Face value + Premium
= ₹10 + ₹1
= ₹11
Amount received on first and final call = ₹11 - (₹5 + ₹3)
= ₹11 - ₹8
= 3
Amount received on first and final call = 1,000 x 3
= ₹3,000