Give answer on the basis of Information given below.
Poonam Ltd. invited application for 5,00,000 shares of ₹10 each @10% premium payable as follows:
Application - ₹3
Allotment - ₹5 [including premium]
1st and final call - balance
Applications were received for 6,60,000 shares. Application for 60,000 shares were rejected and pro-rata allotment was made as follows:
(a) 4,00,000 shares - full
(b) 2,00,000 shares - 50%
Mr. Aman, who was allotted 500 shares under category (a), paid full amount along with allotment money. Whereas another shareholder, Mr. Rahul who was allotted 1000 shares under category (b) failed to pay the allotment money. His shares were subsequently forfeited. These shares were reissued at ₹14 per share for ₹7 paid up. Final call has not yet been made.
Amount received on allotment:
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) - ₹21,99,500.
Issued applications = 5,00,000
Applications received = 6,60,000
Rejected applications = 60,000
Remaining applications = 6,60,000 - 60,000
= 6,00,000
In category a 4,00,000 applications all applications are accepted.
In category b 2,00,000 applications received to whom 50% allotted means 2,00,000 x 50/100 = 1,00,000
Allotment - ₹5 [including premium]
Premium = 10% i.e. 10 x 10/100 = ₹1.
Excess money received on applications adjusted against allotment = 1,00,000 x 3
= ₹3,00,000
Rahul allotted shares = 1,000
Applied shares by Rahul = 2,00,000/1,00,000 x 1000
= 2000 shares.
Excess money received adjusted against allotment = 1,000 x 3
= ₹3,000
Allotment money due from Rahul = 1,000 x 5
= 5,000
Money not received from allotment = 5,000 - 3,000
= ₹2,000
Allotment money due on 5,00,000 shares = 5,00,000 x 5
= 25,00,000
Aman paid amount of call on allotment = 500 x 3
= ₹1,500
Amount received on allotment = 25,00,000 - 3,00,000 - 2,000 + 1,500
= ₹21,99,500