Accounting for Share Capital · Class 12 · CBSE · Commerce Accountancy
X Ltd. issued 50,000 equity shares of Rs. 10 each payable as Rs. 3 on application, Rs. 4 on allotment, and Rs. 3 on first and final call. Application…
Practice question from Accounting for Share Capital (Class 12 · CBSE · Commerce Accountancy), with the correct answer and a step-by-step solution.
hard · MCQ · Q-18E212
X Ltd. issued 50,000 equity shares of Rs. 10 each payable as Rs. 3 on application, Rs. 4 on allotment, and Rs. 3 on first and final call. Applications were received for 70,000 shares. The directors decided to reject applications for 10,000 shares and pro-rata allotment was made to the remaining applicants. How much excess application money was adjusted towards allotment?
- A.Rs. 30,000Correct answer
- B.Rs. 60,000
- C.Rs. 20,000
- D.Rs. 40,000
Solution
Total applications received were 70,000. 10,000 applications were rejected (refunded Rs. 30,000). The remaining 60,000 applicants were allotted 50,000 shares. The excess application money received from pro-rata category is (60,000 - 50,000) * Rs. 3 = 10,000 * Rs. 3 = Rs. 30,000, which is adjusted towards share allotment.
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