Comprehension

Read the following case study and answer Q 41-45.
Surya Ltd issued 10,000 equity shares of ₹ 50 each at a premium of 10%. The company received application for 13,000 shares. The amount was payable as on application 30% on allotment 30% plus Premium; on 1st call 10% and Balance on final call. Allotment was made pro-rata for all applicants. Excess application money received is to be adjusted on allotment. Company received all money called expect from Manan, an applicant, of 390 shares. Manan Paid only application money. His shares were forfeited and 70% of the forfeited shares were reissued as fully paid for ₹ 40 each.

Question: 1

What amount is received by company in securities Premium Reserve Account ?

Updated On: Sep 19, 2024
  • ₹ 50,000
  • ₹ 48,050
  • ₹ 58,500
  • ₹ 48,500
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The Correct Option is D

Solution and Explanation

The correct option is (D) :₹ 48,500.
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Question: 2

Calculate the amount received by Surya limited on allotment.

Updated On: Sep 19, 2024
  • ₹ 2,00,000
  • ₹ 1,96,350
  • ₹ 1,50,350
  • 1,93,650
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The Correct Option is C

Solution and Explanation

The correct option is (C) :₹ 1,50,350.
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Question: 3

Balance of Securities Premium can be utilised for

Updated On: Sep 19, 2024
  • Buying of Asset
  • Conversion of Debentures
  • Buy Back of Shares
  • Repayment of Debts
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The Correct Option is C

Solution and Explanation

The correct option is (C) :Buy Back of Shares.
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Question: 4

Allotment Due per share will be :

Updated On: Sep 19, 2024
  • ₹ 15
  • ₹ 10
  • ₹ 35
  • ₹ 20
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The Correct Option is D

Solution and Explanation

The correct option is (D) :₹ 20.
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Question: 5

Gain on Re-issue of the shares will be transferred to

Updated On: Sep 19, 2024
  • Share Capital
  • Securities Premium Reserve
  • Capital Reserve
  • General Reserve
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The Correct Option is C

Solution and Explanation

The correct option is (C) :Capital Reserve.
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