Read the following passage and answer the following questions.
BCD Ltd. invited applications for 1,00,000 shares of ₹10 each which is payable as follows-
Application - ₹2
Allotment - ₹3
First and final Call - Balance amount
Applications for 3,00,000 shares is received by the company. Company made pro-rata on the all applicants and adjust excess money towards allotment only. Mr. A shareholder who had applied for 3,000 shares failed to pay call money due to which company forfeited his shares and reissued at ₹8 per share as fully paid.
How much money is received by company on first and final call?
Answer & explanation
Correct answer: option 1
The correct answer is option 1- ₹4,95,000.
Per share amount on call = 10 - 2(application)- 3(allotment)
= ₹5
Mr. A did not pay call amount on his shares
He applied for 3,000 shares
Shares allotted to him = 1,00,000/3,00,000 x 3,000
= 1/3 x 3,000
= 1,000
Money received on first and final call = 1,00,000 - 1,000
= 99,000 shares
Total amount received on call = 99,000 x 5
= ₹4,95,000