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 pay 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 received at the time of allotment:
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → ₹ 80,000
Allotment money due = 3,000 × ₹50 = ₹1,50,000
Less: excess application money adjusted = (4,000 − 3,000) × ₹50 = ₹50,000
Balance due on allotment = ₹1,00,000
Less: calls in arrears (holder of 600 shares) = ₹20,000
Amount received on allotment = ₹80,000