Read the following case study and answer the question.

Surya Ltd issued 10,000 equity shares of ₹50 each at a premium of 10%. The company received application for 13,000 shares. The amount was payable as: on application 30%, on allotment 30% plus Premium, on 1st call 10% and Balance on final call. Allotment was made pro-rata for all applicants. Excess application money received is to be adjusted on allotment. Company received all money called except from Manan, an applicant, of 390 shares, Manan Paid only application money. His shares were forfeited and 70% of the forfeited shares were reissued as fully paid for ₹40 each.

What amount is received by company in securities Premium Reserve Account?

₹48,500

The correct answer is Option (4) → ₹48,500.

Total issued shares = 10,000

Premium = 10%

Premium amount = 50 x 10/100
                              = 5

Total amount due on securities premium account = 10,000 x 5
                                                                       = 50,000

Manan did not pay allotment money on his shares

Issued shares = 10,000
Application received = 13,000
Manan applied shares = 390
Allotted shares to Manan = 10/13 x 390
                                    = 300

Securities premium is not received on 300  shares
Not received amount = 300 x 5
                               = 1,500

Total amount received on securities premium account = 50,000 - 1,500
                                                                              = 48,500