Answer based on following passage.
Earn Limited, with an authorised capital of ₹10,00,000 divided into equity shares of ₹ 10 each, issued 50,000 equity shares at a premium of ₹3 per share payable as follows.
On application - ₹3 per share
On allotment - ₹5 per share (including Premium)
On first and final call- Balance amount.
Applications were received for 60,000 shares. The Directors allotted the shares to all applicants on pro-rata basis. All money received except the first and final call on 1,000 shares issued to Ravi.
Identify the amount received as Subscribed Capital.
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → Rs 4,95,000
Share capital part per share: application ₹3, allotment ₹5 − ₹3 premium = ₹2, so final call = ₹10 − ₹3 − ₹2 = ₹5
Subscribed capital called up = 50,000 × ₹10 = ₹5,00,000
Less: calls in arrears (final call on Ravi’s 1,000 shares) = 1,000 × ₹5 = ₹5,000
Amount received on subscribed capital = ₹5,00,000 − ₹5,000 = ₹4,95,000