Raj Ltd. was registered with 70,000 equity shares. They issued 40,000 equity shares @ 10 each payable as follow :
On Application Rs. 4 per share
On Application Rs. 3 per share
and Balance on 2 calls
The issue was over subscribed by 50,000 shares. The directors decided upon making prorata allotment to 60,000 shares while remaining were returned.
The maximum amount that can be called up on the first call by the company is :
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → 2.5
The amount of any call cannot be more than 25% of the face value of the share.
Face value = Rs. 10
Paid on application and allotment = Rs. 4 + Rs. 3 = Rs. 7
Balance on 2 calls = Rs. 3
Maximum on any one call = 25% of Rs. 10 = Rs. 2.50
So the first call can be at most Rs. 2.50, and the second call then collects the remaining Rs. 0.50. Calling the whole Rs. 3 on the first call would break the 25% limit.
Note: It seems that there is a mistake in the original NTA paper, which prints “On Application Rs. 3 per share” on the second line when it should read “On Allotment Rs. 3 per share”. The question can still be solved, since the balance left for the two calls is Rs. 3 either way.
NCERT (2026-27 edition): |