Comprehension
Read the passage given below and answer the questions: Q5 to Q9.
Ram Motors Ltd. invited applications on 3,000 Equity Shares of ₹100 each at a premium of ₹20. For application ₹50 (including premium), on allotment ₹50, and on final call ₹20. Total applications received were 4,000 and allotted on pro-rata basis. Excess application money adjusted towards allotment.
Ram Motors Ltd. invited applications on 3,000 Equity Shares of ₹100 each at a premium of ₹20. For application ₹50 (including premium), on allotment ₹50, and on final call ₹20. Total applications received were 4,000 and allotted on pro-rata basis. Excess application money adjusted towards allotment.
Question: 1
Calculate the amount adjusted in share allotment account.
Calculate the amount adjusted in share allotment account.
Show Hint
In pro-rata allotment, excess application money is adjusted towards allotment.
Updated On: May 18, 2025
- ₹40,000
- ₹1,10,000
- ₹50,000
- ₹30,000
Hide Solution
Verified By Collegedunia
The Correct Option is C
Solution and Explanation
Step 1: Calculate total application money received
Total shares applied = 4,000
Application money per share = ₹50
Total application money = \(4,000 \times ₹50 = ₹2,00,000\)
Step 2: Shares allotted on pro-rata basis
Shares to be allotted = 3,000
Pro-rata allotment ratio = \(\frac{3,000}{4,000} = \frac{3}{4}\)
Shares allotted = 3,000
Step 3: Application money for allotted shares
\(3,000 \times ₹50 = ₹1,50,000\)
Step 4: Excess application money
Excess application money \(= ₹2,00,000 - ₹1,50,000 = ₹50,000\)
Step 5: Excess adjusted towards allotment
Amount adjusted in share allotment account is ₹50,000.
Total shares applied = 4,000
Application money per share = ₹50
Total application money = \(4,000 \times ₹50 = ₹2,00,000\)
Step 2: Shares allotted on pro-rata basis
Shares to be allotted = 3,000
Pro-rata allotment ratio = \(\frac{3,000}{4,000} = \frac{3}{4}\)
Shares allotted = 3,000
Step 3: Application money for allotted shares
\(3,000 \times ₹50 = ₹1,50,000\)
Step 4: Excess application money
Excess application money \(= ₹2,00,000 - ₹1,50,000 = ₹50,000\)
Step 5: Excess adjusted towards allotment
Amount adjusted in share allotment account is ₹50,000.
Was this answer helpful?
0
0
Question: 2
Calculate the amount received at the time of allotment.
Calculate the amount received at the time of allotment.
Show Hint
Amount received on allotment = Total allotment money – excess application adjusted.
Updated On: May 18, 2025
- ₹40,000
- ₹1,00,000
- ₹80,000
- ₹70,000
Hide Solution
Verified By Collegedunia
The Correct Option is B
Solution and Explanation
Step 1: Total allotment money due
Shares allotted = 3,000
Allotment money per share = ₹50
Total allotment money = \(3,000 \times ₹50 = ₹1,50,000\)
Step 2: Less excess application money adjusted
Excess application money adjusted = ₹50,000
Step 3: Amount expected to be received at allotment
\[ ₹1,50,000 - ₹50,000 = ₹1,00,000 \]
Shares allotted = 3,000
Allotment money per share = ₹50
Total allotment money = \(3,000 \times ₹50 = ₹1,50,000\)
Step 2: Less excess application money adjusted
Excess application money adjusted = ₹50,000
Step 3: Amount expected to be received at allotment
\[ ₹1,50,000 - ₹50,000 = ₹1,00,000 \]
Was this answer helpful?
0
0
Question: 3
Calculate the amount of arrear at allotment.
Calculate the amount of arrear at allotment.
Show Hint
Allotment arrears = Number of shares unpaid × Allotment money per share.
Updated On: May 18, 2025
- ₹40,000
- ₹20,000
- ₹30,000
- ₹60,000
Hide Solution
Verified By Collegedunia
The Correct Option is B
Solution and Explanation
Step 1: Shares on which allotment money is unpaid
One shareholder holding 600 shares did not pay allotment money.
Step 2: Amount unpaid per share
₹50 per share
Step 3: Calculate allotment arrears
\[ 600 \times ₹50 = ₹30,000 \] However, the answer given is ₹20,000 (option b), which may indicate partial payment or a typo. But based on data, ₹30,000 is correct. Please verify.
One shareholder holding 600 shares did not pay allotment money.
Step 2: Amount unpaid per share
₹50 per share
Step 3: Calculate allotment arrears
\[ 600 \times ₹50 = ₹30,000 \] However, the answer given is ₹20,000 (option b), which may indicate partial payment or a typo. But based on data, ₹30,000 is correct. Please verify.
Was this answer helpful?
0
0
Question: 4
Calculate the amount received in final call that includes arrears also.
Calculate the amount received in final call that includes arrears also.
Show Hint
Final call receipts include final call money plus any arrears received on earlier calls.
Updated On: May 18, 2025
- ₹80,000
- ₹6,00,000
- ₹5,80,000
- ₹6,15,000
Hide Solution
Verified By Collegedunia
The Correct Option is A
Solution and Explanation
Step 1: Shares for final call
3,000 shares
Step 2: Final call amount per share
₹20 per share
Step 3: Final call money due
\[ 3,000 \times ₹20 = ₹60,0000 \] Step 4: Add allotment arrears paid with final call
Allotment arrears = ₹30,000 (from unpaid allotment)
Step 5: Total final call money received
\[ ₹60,0000 + ₹30,000 = ₹6,30,000, \] The given answer is ₹80,000 which seems to be inconsistent with data. Please verify or clarify.
3,000 shares
Step 2: Final call amount per share
₹20 per share
Step 3: Final call money due
\[ 3,000 \times ₹20 = ₹60,0000 \] Step 4: Add allotment arrears paid with final call
Allotment arrears = ₹30,000 (from unpaid allotment)
Step 5: Total final call money received
\[ ₹60,0000 + ₹30,000 = ₹6,30,000, \] The given answer is ₹80,000 which seems to be inconsistent with data. Please verify or clarify.
Was this answer helpful?
0
0
Question: 5
What will be the rate of interest on calls in arrears if Articles of Association is silent?
What will be the rate of interest on calls in arrears if Articles of Association is silent?
Show Hint
Default interest on calls in arrears may vary but is often considered 10% p.a. when silent.
Updated On: May 18, 2025
- @ 5% pa
- @ 6% pa
- @ 10% pa
- @ 12% pa
Hide Solution
Verified By Collegedunia
The Correct Option is C
Solution and Explanation
Step 1: Default interest on calls in arrears
If Articles of Association are silent, the usual rate of interest charged on calls in arrears is generally 10% p.a., as per common practice (sometimes varies by jurisdiction).
Step 2: Conclusion
Hence, rate of interest on calls in arrears is 10% p.a. if no specific agreement exists.
If Articles of Association are silent, the usual rate of interest charged on calls in arrears is generally 10% p.a., as per common practice (sometimes varies by jurisdiction).
Step 2: Conclusion
Hence, rate of interest on calls in arrears is 10% p.a. if no specific agreement exists.
Was this answer helpful?
0
0
Top Questions on Shares
- 600 shares of ₹10 each were issued at 20% premium. Final call of ₹3 not received on 100 shares. What is the forfeiture amount?
According to Securities and Exchange Board of India (SEBI), guidelines, minimum subscription of capital cannot be less than 90% of .......
- The amount of share capital which a company is authorised to issue by its Memorandum of Association is known as ........
Alexia Limited invited applications for issuing 1,00,000 equity shares of ₹ 10 each at premium of ₹ 10 per share.
The amount was payable as follows:- On application ₹ 9 per share (Including premium ₹ 6 per share)
- On allotment ₹ 8 per share (Including premium ₹ 4 per share)
- On first and final call ₹ 3 per share.
Applications were received for 1,50,000 equity shares and allotment was made to the applicants as follows:
Category A: Applicants for 90,000 shares were allotted 70,000 shares.
Category B: Applicants for 60,000 shares were allotted 30,000 shares.
Excess money received on application was adjusted towards allotment and first and final call.
Shekhar, who had applied for 1200 shares failed to pay the first and final call. Shekhar belonged to category B.
Pass necessary journal entries for the above transactions in the books of Alexia Limited. Open calls in arrears and calls in advance account, wherever necessary.- Suhas and Vilas were partners in a firm with capitals of Rs 4,00,000 and Rs 3,00,000 respectively. They admitted Prabhas as a new partner for a \( \frac{1}{5} \) share in future profits. Prabhas brought Rs 2,00,000 as his capital. Prabhas' share of goodwill will be:
View More Questions
Questions Asked in CUET exam
- Rearrange the following parts into a meaningful sentence:
P: before making any major decisions
Q: is wise
R: to consider all possible outcomes
S: and seek advice if necessary- CUET (UG) - 2025
- Sentence Arrangement
- Rearrange the following parts into a meaningful sentence:
P: when the electricity went out
Q: we were watching a movie
R: and had to finish it the next day
S: at my friend's house- CUET (UG) - 2025
- Sentence Arrangement
- Rearrange the following parts into a meaningful sentence:
P: is one of the most valuable skills
Q: being able to communicate clearly
R: in both personal and professional life
S: a person can develop- CUET (UG) - 2025
- Sentence Arrangement
Arrange the following in decreasing order of number of molecules contained in:
(A) 16 g of \( O_2 \)
(B) 16 g of \( CO_2 \)
(C) 16 g of \( CO \)
(D) 16 g of \( H_2 \)- CUET (UG) - 2025
- Mole concept and Molar Masses
- 5, 10, 17, 26, ?, 50 — Find the missing number.
- CUET (UG) - 2025
- Number Series
View More Questions