Practicing Success
Practicing Success
CUET Preparation Today
| Analyze the case given below and answer the questions that follow: Anil Technologies limited company issued 5,000, 9% Debentures of Rs. 100 each at a premium of Rs. 20 payable as follows: 1. Rs. 40 including premium of Rs. 10 on application 2. Rs. 40 including premium of Rs. 10 on allotment 3. Balance on first and final call Applications were received for 5,000 debentures and allotment was made to all the applicants. All the calls were made and amounts received. |
| What amount of money that was received on application needs to be transferred to the securities premium reserve account? |
Rs. 5,00,000 Rs. 50,000 Rs. 1,00,000 Rs. 2,00,000 |
| Rs. 50,000 |
| Application money received included Rs. 10 premium. Therefore amount transferred to the securities premium reserve account is 5000 X 10 = Rs. 50,000. |
