Question

W Ltd. issued 2,00,000 shares of Rs. 100 each at a premium of 20% on May 01, 2015, payable as follows:
On application. (including 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 01, 2015. At the time of remitting the allotment money, he indicated that the excess money should be adjusted towards the call money. The directors of the company made the first and 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

Here, Sunil paid Rs 5,00,000 for 10,000 shares for allotment. The amount to be paid on allotment was Rs 25*10,000 i.e. Rs 2,50,000. The balance of amount paid by Sunil was to be adjusted towards first and final call i.e. Rs 2,50,000. As per Table F of schedule I of the act, the interest on call in advance if not metioned in AOA shall be levied at 12% p.a. Here, 12% of Rs 2,50,000 is Rs 30,000. First and final call was paid on 1st June whereas directors made first and final call on 31st October which means advance was paid Share was paid 5 months before. Hence, amount of interest paid to Sunil on Calls-in-Advance will be (Rs 30,000/12)*5 i.e. Rs 12,500.