Read the following passage carefully and answer the questions.
X Itd. Issued 30,000 shares to the public having Face value ₹100 at 10% premium. Money is receivable as follows:
Application = ₹40 (including premium)
Allotment = ₹45
First and Final call = Remaining amount
The public applied for 50,000 shares. The company rejected application for 10,000 shares and made a pro rata allotment to the rest of the applicants. A shareholder applying for 400 shares, didn't pay the allotment and call money and his allotted shares were forfeited by the company. Later, the forfeited shares were reissued at ₹80 each as fully paid.
Amount to be credited to Calls-in Arrears account at the time of forfeiture is:
Answer & explanation
Correct answer: option 3
The correct answer is option 3- ₹17,000.
Issue applications = 30,000
Received applications = 50,000
Rejected application = 10,000
Pro rata made on = 50,000 - 10,000
= 40,000
Those who apply for 40,000 shares got 30,000 shares.
A shareholder applying for 400 shares, didn't pay the allotment and call money.
Alloteed shares to shareholder = 30,000/40,000 x 400
= 300
Money received by him application = 400 x 40
= 16,000
Money required on application = 300 shares x 40
= 12,000
Excess money adjusted on allotment = 16,000 - 12,000
= 4,000
Money due on allotment and calls = 300 shares x (45 +25)
= 300 x 70
= 21,000
Money not received = 21,000 - 4,000
= 17,000