Read the following case study and answer the question.
Surya Ltd issued 10,000 equity shares of ₹50 each at a premium of 10%. The company received application for 13,000 shares. The amount was payable as: on application 30%, on allotment 30% plus Premium, on 1st call 10% and Balance on final call. Allotment was made pro-rata for all applicants. Excess application money received is to be adjusted on allotment. Company received all money called except from Manan, an applicant, of 390 shares, Manan Paid only application money. His shares were forfeited and 70% of the forfeited shares were reissued as fully paid for ₹40 each.
Calculate the amount received by Surya limited on allotment.
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → ₹1,50,350
Per share: application ₹15 (30%), allotment ₹20 (30% + ₹5 premium).
Excess application money:
Received = 13,000 × ₹15 = ₹1,95,000
Needed = 10,000 × ₹15 = ₹1,50,000
Excess adjusted on allotment = ₹45,000
Manan’s shares (pro-rata 10,000 : 13,000):
Shares allotted = 390 × 10,000/13,000 = 300
Paid on application = 390 × ₹15 = ₹5,850
Needed on application = 300 × ₹15 = ₹4,500
His excess = ₹1,350
His allotment due = 300 × ₹20 = ₹6,000
Unpaid by him = ₹6,000 − ₹1,350 = ₹4,650
Amount received on allotment:
Total due = 10,000 × ₹20 = ₹2,00,000
Less: excess application money = ₹45,000
Less: Manan’s unpaid amount = ₹4,650
Received = ₹1,50,350