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.
Issued shares = 10,000
Application received = 13,000
Amount received on application = 13,000 x 15
= 1,95,000
Amount excess received on application = 1,95,000 - 1,50,000
= 45,000
This 45,000 is adjusted against allotment.
Allotment money due on 10,000 shares
Amount due = 15 plus Premium of 5
Total amount due on allotment = 10,000 x 20
= 2,00,000
Manan applied shares = 390
Allotted shares to Manan = 10/13 x 390
= 300
Excess money received from Manan adjusted against allotment = 90 x 15
= 1,350
Money due from Manan from allotment = 300 x 20
= 6,000
Not received from Manan = 6,000 - 1,350
= 4,650
Amount received on allotment = Amount due - Money adjusted from application - Money not received from Manan
= 2,00,000 - 45,000,- 4,650
= 1,50,350