Read the passage given below and answer the question:
K Ltd. invited applications on 3000 Equity Shares of ₹100 each at a premium of ₹20. For application ₹50, on allotment ₹50 and on final call ₹20. Application also includes premium amount. Total application received 4,000 and allotted on prorata basis and excess amount adjusted towards allotment. One shareholder holding 600 shares did not pay allotment money but paid it with final call that was made after 2 months of allotment. Final call amount received in full.
Calculate the amount of arrear at allotment.
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → ₹ 20,000
Applications 4,000 shares, allotment 3,000 shares, so the pro-rata ratio is 4 : 3.
Shares applied for by the holder of 600 shares = 600 × 4/3 = 800 shares
Application money paid by him = 800 × ₹50 = ₹40,000
Application money due on 600 shares = 600 × ₹50 = ₹30,000, so his excess = ₹10,000 (adjusted towards allotment)
Allotment due on 600 shares = 600 × ₹50 = ₹30,000
Calls in arrears on allotment = ₹30,000 − ₹10,000 = ₹20,000