A company invited applications for 20,000 shares and received the applications for 25,000 shares. The directors rejected the applications for 5,000 shares. Amount paid on application was Rs 10 per share. How much amount shall be refunded?

None of these

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Rs 200000

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Rs 50000

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

Rs 250000

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Open in App

Solution

The correct option is C
Rs 50000

Excess Application = 25,000- 20,000 = 5,000
Amount to be refunded = 5,000 X 10 = Rs. 50,000.

Suggest Corrections

Similar questions

Q. 'Samta Limited invited applications for issuing

6, 750

equity shares of

R s 10

each. The amount was payable as follows : On application -

R s 3

per share
On allotment -

R s 5

per share
On first and final call -

R s 2

per share
The issue was fully subscribed. Subhash applied for

250

shares and paid his entire share money with application. Moti applied for

175

shares and paid allotment money also with application. The amount received with applications was :

A company issued 4,000 equity shares of Rs. 10 each at par payable as under :

On application Rs. 3; On allotment Rs. 2; On first call Rs. 4 and on final call Rs. 1 per share

Applications were received for 13,000 shares. Applications for 3,000 shares were rejected and pro-rata allotment was made to the applicants for 10,000 shares. How much amount will be received in cash on the first call? Excess application money is adjusted towards the amount due on allotment and calls.

PRACTICAL PROBLEMS

(Over subscription- Some over application refunded and rest used for allotment)

ONGC Ltd. invited applications for 25,000 shares of Rs 100 each payable as under-

On Application Rs 20		On Allotment	Rs 40
On First Call Rs 25, and		On Final Call	Rs 15

Public applied for 40,000 shares, out of which 10,000 shares were rejected and money on 5,000 shares was diverted to share allotment. All the allotment and calls money was received.
Pass journal entries in the journal of ONGC Ltd.

In the event of applications for 20,000 shares being invited and those received are for 25,000 shares, it is decieded to allot shares in the ratio of 4:5 to all applicants. How much shares shall be allotted to a shareholder who has applied for 1000 shares.

Q. JS Ltd. invited applications for issuing