Question

Vishant Ltd. invited applications for issuing 6,000 equity shares of \rupee 10 each at 10\% premium. The issue was fully subscribed. The amount per share was payable as follows: On application - \rupee 3, on allotment - \rupee 3 (including premium), on first call - \rupee 3 and on final call - \rupee 2. Ashish, the holder of 200 shares, paid the entire money along with allotment. The total amount received on allotment was:

• A. \rupee 18,000
• B. \rupee 19,000
• C. \rupee 25,000
• D. \rupee 21,000

Hint:

While calculating amounts received on allotment, include only the installments due at the allotment stage and any additional payments made by shareholders.

Answer 1

The Correct Option is B

The total amount received on allotment can be calculated as follows: \[ \text{Allotment money per share} = \rupee 3 \ (\text{including premium of \rupee 1}) \] Total shares = 6,000
Total allotment money = \(6,000 \times \rupee 3 = \rupee 18,000\).
Ashish paid the full amount for 200 shares, including first call and final call. Additional amount paid by Ashish: \[ \rupee (3 + 3 + 2) \times 200 = \rupee 1,600 \] However, the first call and final call are not due yet, so only the allotment amount paid by Ashish is considered: \[ 200 \times \rupee 3 = \rupee 600 \] Total amount received on allotment: \[ \rupee 18,000 + \rupee 600 = \rupee 19,000 \]