Question

X Ltd. invited applications for issuing 90,000 equity shares of ₹100 each. The amount per share was payable as follows:
On Application – ₹20
On Allotment – ₹50
On First and Final Call – Balance
Applications for 2,00,000 shares were received. An applicant who had applied for 5,000 shares paid the entire share money with the application.
The total application money received by the company was:

• A. ₹44,00,000
• B. ₹40,00,000
• C. ₹18,00,000
• D. ₹90,00,000

Hint:

Always add any advance payment (like full money paid early) to the standard application collection.

Answer 1

The Correct Option is A

Total applications received = 2,00,000 shares
Application money per share = ₹20
So, basic application money = 2,00,000 × ₹20 = ₹40,00,000
One applicant applied for 5,000 shares and paid full amount (₹100/share).
Full money per share = ₹100, so for 5,000 shares: 5,000 × ₹100 = ₹5,00,000
Out of this, ₹1,00,000 (5,000 × ₹20) is already included in the ₹40,00,000 above as application money.
So, the excess paid = ₹5,00,000 – ₹1,00,000 = ₹4,00,000
This extra ₹4,00,000 is also received with the application.
Hence, total application money received = ₹40,00,000 + ₹4,00,000 = ₹44,00,000