Question

W Ltd. issued 2,00,000 shares of rs. 100 each at a premium of 20% on May 1,2015, payable as follows:
On application (inclusive of premium) Rs.45
On allotment Rs.25
On first & final call Rs.50
Sunil to whom 10,000 shares were allotted, has paid Rs.5,00,000 on June 1,2015. At the time of remitting the allotment money, he indicated the excess that money should be adjusted towards the call money.The directors of the company made the first and the final call on October 31,2015. The company has a policy of paying interest on calls-in-advance as per Table F of Schedule I to the Companies Act 2013. The amount of interest paid to sunil on calls-in-Advance will be_______________-

• A. Rs. 25,000
• B. Rs. 12,500
• C. Rs. 20,833.33
• D. Rs. 18,750

Answer 1

The correct option is B Rs. 12,500

Amount Due on allotment : 10,000*25 = 2,50,000
amount paid on Allotment = 5,00,000
Amount adjusted on calls : 5,00,000 - 2,50,000
Final call was made 5 month after allotment
So, Interest on calls in advance @ 12% for 5 months =
2,50,000*12%*5/12
= 12,500 Rs.