Question

Sugandh Ltd. issued 60,000 shares of ₹ 10 each at a premium of ₹ 2 per share payable as ₹ 3 on application, ₹ 5(including premium) on allotment and the balance on first and final call. Applications were received for 92,000 shares. The Directors resolved to allot as:

(i)	Applicants of 40,000 shares	30,000 shares,
(ii)	Applicants of 50,000 shares	30,000 shares,
(iii)	Applicants of 2,000 shares	Nil.

Mohan, who had applied for 800 shares in Category
(i) and Sohan, who was allotted 600 shares in Category
(ii) failed to pay the allotment money. Calculate amount received on allotment.

Answer 1

Issued Shares	60,000
Less: Applied Shares	92,000
Over-subscribed Shares	32,000

Payable as:

Rs	3	on Application
Rs	5	on Allotment (Including Rs 2 premium)
Rs	4	on First and Final Call
Rs	12	(10 + 2)

Applied	Allotted	Money Received on Application @ Rs 3	Money adjusted on Appliction @ Rs 3	Excess	Allotment due @ Rs 5	Excess money adjusted on Allotment @ Rs 5
40,000	­30,000	1,20,000	90,000	30,000	1,50,000	30,000
50,000	30,000	1,50,000	90,000	60,000	1,50,000	60,000
2,000	NIL	6,000	–	6,000
				(Bank)
92,000	60,000	2,76,000	1,80,000		3,00,000	90,000

Mohan

Money Received on Application 800×3	=	2,400
Application money adjusted to Share Capital 600×3	=	1,800
Execs Money on Application	=	600
Allotment due on 600 shares × Rs 5	=	3,000
Less: Adjustment of excess money on application	=	600
Calls-in-Arrears by Mohan		2,400

Sohan

Money received on Application 1,000×3	=	3,000
Application money adjusted to Share Capital 600×3	=	1,800
Excess money on application	=	1,200
Allotment due on 600 Shares × Rs 5	=	3,000
Less: Adjustment of excess money on application	=	1,200
Calls-in-Arrears by Sohan	=	1,800
Allotment due on 60,000 shares × Rs 5	=	3,00,000
Less: Excess Application money adjusted on Allotment	=	90,000
		2,10,000
Less: Calls-in-Arrears by Mohan	=	2,400
Less: Calls-in-Arrears by Sohan	=	1,800
Money received on allotment	=	2,05,800