Eastern Company Limited issued 40,000 shares of Rs. 10 each to the public for the subscription out of its share capital, payable as Rs. 4 on application, Rs. 3 on allotment and the balance on first and final call. Applications were received for 40,000 shares. The company made the allotment to the applicants in full. All the amounts due on allotment and first and final call were duly received. With how much amount shall the share capital be credited on first and final call?

None of these

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Rs 1,20,000

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Rs 2,00,000

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Rs 1,60,000

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Solution

The correct option is B
Rs 1,20,000

Amount to be credited = 40,000 X 3 = Rs 1,20,000.

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Similar questions

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Mona Earth Mover Limited decided to issue 12,000 shares of Rs.100 each payable at Rs.30 on application, Rs.40 on allotment, Rs.20 on first call and balance on second and final call. Applications were received for 13,000 shares. How much amount shall be entered in share application account?

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The correct option is B Rs 1,20,000 Amount to be credited = 40,000 X 3 = Rs 1,20,000.

The correct option is B
Rs 1,20,000

Amount to be credited = 40,000 X 3 = Rs 1,20,000.