Question

Based on below information you are required to answer the following question:

Sangita Limited invited applications for issuing 60,000 shares of ₹ 10 each at par. The amount was payable as follows:

On Application ₹ 2 per share
On Allotment ₹ 3 per share
On First and Final Call ₹ 5 per share

Applications were received for 92,000 shares. Allotment was made on the following basis:

1. To applicants for 40,000 shares - Full
2. To applicants for 50,000 shares - 40%
3. To applicants for 2,000 shares - Nil

₹ 1,08,000 was realised on account of allotment (excluding the amount carried from application money) and ₹ 2,50,000 on account of call.

The directors decided to forfeit shares of those applicants to whom full allotment was made and on which allotment money was overdue.

How much allotment amount is already received during application?

Options

• ₹ 60,000

• ₹ 40,000

• ₹ 1,00,000

• ₹ 4,000

Answer 1

₹ 60,000

Explanation:

The extra `30,000 xx ₹ 2 = ₹ 60,000` obtained from the group of 50,000 shares must be adjusted in the share allocation.