A company issued 5,000 shares of ₹10 each. Application received for 12,000 shares. Company decided to reject 2,000 applications and pro rata allotment for remaining shares. Amount payable was as follows :
On Application - ₹3
On allotment- ₹4 and
Remaining on call money.
What will be the amount received at the time of allotment?
Answer & explanation
Correct answer: option 4
The correct answer is option 4- ₹5,000.
Shares issued 5,000 but applications received for 12,000 out of which 2000 were rejected.
On 2000 shares money will be refunded.
So, Total Amount received at the time of application on remaining shares = 10,000 x 3
= 30,000
Amount should be received on shares = 5,000 x 3
= 15,000
Excess money = 30,000 - 15,000
= 15,000 ( this will be adjusted against allotment)
Share allotment due = 5,000 x 4
= 20,000
Amount received at the time of allotment = Due amount on allotment - Excess amount received on application
= 20,000 - 15,000
= 5,000