Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Accounting for Shares

Question:

R.Ltd invited applications for 15,000 shares of ₹10 each at premium of ₹2 per share. The amount was payable as follows:
On Application ₹4
On allotment ₹5
On 1st call ₹2
On final call ₹1
Applications were received for 20,000 shares. The application of 2,000 shares was rejected. Mohan, who applied for 3,000 shares was allotted in full and prorata allotment was made to the remaining applicants. All money was fully received with the exception of the first call and final call on 3,000 shares held by Hari. These shares were forfeited and subsequently re-issued @ ₹8 per share.

On the basis of the above information answer the question.

Interest on calls in advance is allowed according to table F of Companies Act 2013 at the rate of:
Options:
6% p.a.
12% p.a.
10% p.a.
5% p.a.
Correct Answer:
12% p.a.
Explanation:
Interest on calls in advance is allowed according to Table F of Companies Act, 2013 at the rate of 12% per annum. Table F states that the company may pay interest on calls in advance at such rate not exceeding 12% per annum as may be agreed upon between the Board and the member paying the sum in advance.