XYZ limited has issued 20,000 debentures of Rs 100 each redeemable after 4 years of which Rs 40 need to be paid at application stage and Rs 60 rupees need to be paid at allotment stage. Let’s say the public has subscribed for 30,000 debentures. If the company decides to refund the excess application money. How much money should be refunded?

8,00,000

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12,00,000

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4,00,000

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30,00,000

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Solution

The correct option is C
4,00,000

Excess appliacation = 30,000 - 20,000 = 10,000

The money to be refunded
= 10,000 * 40
= Rs 4,00,000

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Similar questions

XYZ limited has issued 20,000 debentures of Rs 100 each redeemable after 4 years of which Rs 40 need to be paid at application stage and Rs 60 need to be paid at allotment stage. Let’s say the public has subscribed for 30,000 debentures. If the company decides to refund the excess application money. How much money will be transferred to debenture account?

XYZ limited has issued 20,000 debentures of Rs.100 each redeemable after 4 years of which Rs 40 needs to be paid at application stage and Rs 60 needs to be paid at allotment stage. Let’s say the public has subscribed for 30,000 debentures. How much money did the company received at the time of application?

Q. Issued debentures=20,000, Subscribed debentures=30,000 Application money=Rs.40 each
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The correct option is C 4,00,000 Excess appliacation = 30,000 - 20,000 = 10,000 The money to be refunded = 10,000 * 40 = Rs 4,00,000

The correct option is C
4,00,000

Excess appliacation = 30,000 - 20,000 = 10,000

The money to be refunded
= 10,000 * 40
= Rs 4,00,000