Based on following passage answer questions below.
A Ltd with an Authorised Capital of ₹10,00,000 is divided into shares of ₹10 each, issued 50,000 shares at a premium of ₹2 per share payable as follows
on Application ₹3 per share
on Allotment ₹5 per share (including premium)
on First and Final call Balance amount
Application were received for 60,000 shares and the directors allotted shares to all on proportionate basis. All money received except first and final call from Hari who had applied for 1200 shares. His shares were forfeited and later half of his forfeited shares were reissued at ₹8 per share as fully paid up.
Select the amount that is received from Hari's reissued shares.
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → ₹4,000
Shares were allotted on a proportionate basis, so Hari got fewer shares than he applied for.
Ratio of allotment = 50,000 : 60,000 = 5 : 6
Shares allotted to Hari = 1,200 × 5/6 = 1,000
Shares reissued (half) = 1,000 × 1/2 = 500
Amount received on reissue = 500 × ₹8 = ₹4,000
₹4,800 uses the 1,200 shares applied for (600 reissued), not the 1,000 shares allotted.
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