AM Ltd. issued 45,000 shares of ₹10 each at par. The shares were payable ₹3 on the application, ₹5 on the allotment, and the balance on the first and final call. It received ₹1,23,000 on application. What amount should the company receive on the allotment?
Answer & explanation
Correct answer: option 2
The correct answer is option 2- ₹2,05,000.
Shares issued =45,000 at par @10 each
Application is of ₹3
Amount received on application = ₹1,23,000
Shares subscribed by the public = 1,23,000/3
= 41,000 shares
Allotment money = 41,000 shares X 5
= ₹2,05,000