Read the passage given below and answer the question:
K Ltd. invited applications on 3000 Equity Shares of 100 each at a premium of ₹20. For application ₹50, on allotment ₹50 and on final call ₹20. Application also includes premium amount. Total application received 4,000 and allotted on prorata basis and excess amount adjusted towards allotment. One shareholder holding 600 shares did not paid allotment money but paid it with final call that was made after 2 months of allotment. Final call amount received in full.
Calculate the amount adjusted in share allotment account.
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → ₹50,000
Shares issued = 3,000
Applications received = 4,000
Money received on applications = 4,000 x 50
= ₹2,00,000
Money adjusted against share capital = 3,000 x 50
= ₹1,50,000
Excess money = 2,00,000 - 1,50,000
= ₹50,000
This money will be adjusted against allotment.