Practicing Success
Surya limited invited applications for 15,000 shares for ₹10 each at a premium of 20% per share. The amount was payable as under: On application ₹4 On allotment ₹6 Applications were received for 36,000 shares and pro-rata allotment was made to all the applicants. Directors have not made the final call. Mr. Ritesh the holder of 300 shares did not pay anything after application money. Directors forfeited these shares and re-issued them at ₹6 per share. On the basis of following case, answer the Question. |
Calculate the amount not paid by Mr. Ritesh at the time of allotment. |
₹ 1800 ₹ 420 ₹ 1600 ₹ 120 |
₹ 120 |
The correct answer is Option (4) - ₹ 120. Pro-rata ratio = 12:5 On application ₹4 Money received from Ritesh = 720 x 4 Money on application needed = 300 x 4 Excess money adjusted towards allotment = 2880 - 1200 Money due on allotment = 300 x 6 Money not received on allotment = Money due on allotment - Excess money adjusted |