Wye Ltd. Issued 10,000 shares of Rs 10 each payable as follows- Application - Rs 4, Allotment Rs 3, Final Call - Rs 3.
Applications received for 12,500 shares. The company decided to reject 2,500 shares. After receiving allotment money, What will be the Bank balance of the company?
Answer & explanation
Correct answer: option 1
The correct answer is option 1- ₹70,000.
Number of shares issued = 10,000
Face value per share = ₹10
Application money per share= ₹4
Allotment money per share: ₹3
Applications received = 12,500
Shares rejected = 12,500 - 10,000
= 2,500
Upto allotment ₹7 is received on 10,000 shares.
Bank balance = 10000 shares x 7
= ₹70000