X Ltd . Issued 15,000 shares of ₹10 each payable as follows:
i. Application - ₹2
ii. Allotment - ₹3
iii. First and Final Call - ₹5
Application received for 25,000 shares. Company decided to allot them as follows
i. 10,000 - Full
ii. 10,000 - Pro rata
iii. 5,000 - Rejected
The amount adjusted to the share allotment account after receiving the application money, will be..............
Answer & explanation
Correct answer: option 2
The correct answer is option 2- ₹10,000.
Application money received = 25,000 x 2
= 50,000
Share capital needed at application time = 15,000 x 2
= 30,000
Refund = 5,000 x 2
= 10,000
Excess money adjusted against allotment
Money adjusted on Share Allotment = 50,000 - 30,000- 10,000
= 10,000