The minimum amount called on application for issue of shares is __________ of face value.

10

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5

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2

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Not Specified

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Solution

The correct option is B $5$ %
Issue of Shares is the process in which companies allot new shares to shareholders. Shareholders can be either individuals or corporates.
Minimum application money should be 5% of the nominal value or face value of the shares as per companies act.

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Similar questions

Following amounts were payable on issue of shares by a company: Rs. 3 on application, Rs. 3 on allotment, Rs. 2 on first call and Rs. 2 on final call. X holding 500 shares paid only application and allotment money whereas Y holding 400 shares did not pay final call. Amount of Calls in arrear will be :

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 :

Q. P Ltd. forfeited 10 shares of Rs 10 each (Rs 6 called up) issued at a discount of 10% to Y on which he had paid an application money of Rs 2 per share. If 8 of these shares were re-issued as Rs 8 called up for Rs 5 per share, the Profit on re-issue is-

Q. Zoya Ltd. issued 10,000 shares of ₹10 each payable as ₹3 on application, ₹2 on allotment, ₹3 on first call, and ₹2 on the second and final call. K, a shareholder of 100 shares paid only application and allotment money. Y, a shareholder of 250 shares did not pay second and final call money. Calculate the total amount of calls-in-arrear:

Bhagwati Ltd. invited applications for issuing 2,00,000 equity shares of Rs 10 each. The amount were payable as follows :

On Application --Rs 3 per share.

On allotment --Rs 5 per share.

On first and final call -- Rs 2 per share.

Application were received for 3,00,000 shares and pro-rata allotment was made to all the applicants. Money overpaid on application was adjusted towards allotment money. B, who was allotted 3,000 shares, 2,500 shares were reissued as fully paid up @ Rs 8 per share.

Pass necessary journal entries to record the above transactions in the books of Bhagwati Ltd.

(a) A company forfeited 200, shares of Rs 20 each, Rs 15 per share called up on which Rs 10 per share had been paid Directors reissued all the forfeited shares to B as Rs 15 per share paid up, for a payment of Rs 10 each . Give journal entries in the books of the company for forfeiture and re-issue of shares.

(b) A Ltd. forfeited 100 equity shares of the face value of Rs 10 each, for the non-payment of first call of Rs 2 per share. Rs 6 per share had already been called and paid. These shares were subsequently re-issued as fully paid at the rate of Rs 7 per share. Give journal entries in the books of the company for forfeiture and re-issue of shares.

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The minimum amount called on application for issue of shares is __________ of face value.

The correct option is B 5%Issue of Shares is the process in which companies allot new shares to shareholders. Shareholders can be either individuals or corporates.Minimum application money should be 5% of the nominal value or face value of the shares as per companies act.

The correct option is B $5$ %
Issue of Shares is the process in which companies allot new shares to shareholders. Shareholders can be either individuals or corporates.
Minimum application money should be 5% of the nominal value or face value of the shares as per companies act.