Ashok a shareholder of a company to whom 12,000 shares of ₹100 each were allotted, failed to pay allotment ₹30 per share and first & final call ₹30 per share. Ashok had paid only application money. The Pro-rata allotment proportion is 5:6. What will be the amount of arrears on allotment?
Answer & explanation
Correct answer: option 1
The correct answer is option 1- ₹2,64,000.
Alloted shares = 12,000
Pro-rata ratio is 5:6
Applied share by Ashok = 6/5 X 12,000
= 14,400 shares
AMOUNT DUE ON ALLOTMENT = 12,000 X 30
= ₹3,60,000
Excess money on application = (14,400-12,000) X 40
= 2,400 x 40
= ₹96,000
Arrears on allotment = 3,60,000 - 96,000
= ₹2,64,000