PQR Ltd. issued 40,000 Equity shares of Rs. 10 each at par payable Rs. 3 on application, Rs. 4 on allotment and balance on first and final call. Applications were received for 1,10,000 shares. Applications for 20,000 shares were refused and allotment was made prorata to remaining applicants. Amount received on allotment is :
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → Rs. 10,000
Applications for 20,000 shares were refused, and their money is returned. The other applicants (for 90,000 shares) get 40,000 shares pro rata. The extra application money they paid is kept and adjusted against the allotment money, so they pay only the balance on allotment.
Application money received from applicants who get shares = 90,000 × Rs. 3 = Rs. 2,70,000
Application money due on shares allotted = 40,000 × Rs. 3 = Rs. 1,20,000
Excess application money = Rs. 2,70,000 − Rs. 1,20,000 = Rs. 1,50,000
Allotment money due = 40,000 × Rs. 4 = Rs. 1,60,000
Amount received on allotment = Rs. 1,60,000 − Rs. 1,50,000 = Rs. 10,000
NCERT (2026-27 edition): |