Answer based on following passage.
Earn Limited, with an authorised capital of 10,00,000 is 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 I 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.
Subscribed capital = 50,000 × 10
= 5,00,000
Less: Calls in arrears = 1,000 × 5
= (5,000)
Amount received = 5,00,000- 5,000
= 4,95,000