Based on following passage answer questions below
A Ltd with an Authorised Capital of ₹10,00,000 is divided into shares of ₹10 each, issued 50,000 shares at a premium of ₹2 per share payable as follows
on Application ₹3 per share
on Allotment ₹5 per share (including premium)
on First and Final call Balance amount
Application were received for 60,000 shares and the directors allotted shares to all on proportionate basis. All money received except first and final call from Hari who had applied for 1200 shares. His shares were forfeited and later half of his forfeited shares were reissued at ₹8 per share as fully paid up.
Select the amount received on the Share allotment account.
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → ₹2,20,000
Application money received on the extra 10,000 shares is not refunded; on pro-rata allotment it is adjusted towards the allotment money, so less cash is received on allotment.
Allotment due = 50,000 × ₹5 = ₹2,50,000
Application money received = 60,000 × ₹3 = ₹1,80,000
Application money needed = 50,000 × ₹3 = ₹1,50,000
Excess adjusted to allotment = ₹30,000
Allotment money received = ₹2,50,000 − ₹30,000 = ₹2,20,000
₹2,50,000 is the allotment money due before the adjustment; Hari defaulted only on the final call, so nothing else is short on allotment.
NCERT (2026-27 edition): |