CBSE 2025, Compartment, Set 1

Question

Parachita Ltd. invited applications for issuing 80,000 equity shares of ₹100 each at par. The amount was payable as under:
On Application - ₹30 per share
On Allotment - ₹20 per share
On first and final call - Balance amount
Applications were received for 2,00,000 equity shares. Allotment was made to all applicants on pro-rata basis. The amount received at the time of allotment was: A). 16,00,000 B). 24,00,000 C). Nil D). 40,00,000

Edvaya · Accepted Answer

The correct answer is Nil. Total Application Money Received = $2,00,000 	imes 30 = ₹60,00,000$. Application Money Required for 80,000 shares = $80,000 	imes 30 = ₹24,00,000$. Excess Application Money = $60,00,000 - 24,00,000 = ₹36,00,000$. Amount Due on Allotment = $80,000 	imes 20 = ₹16,00,000$. Since the excess application money (₹36,00,000) is more than the amount due on allotment (₹16,00,000), the entire allotment due is covered. Hence, no further amount is received at the time of allotment (Nil).

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Accountancy > Accounting For Companies > Accounting For Share Capital

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