Z and Co. issue 10,000 shares of ₹20 each, payable as ₹10 each on application and allotment. Applications were received for 12,000 shares, and allotment was made on a pro rata basis. Calculate the amount to be received at the time of allotment.

[0.88 marks]

₹80,000

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

₹1,00,000

No worries! We‘ve got your back. Try BYJU‘S free classes today!

₹1,20,000

No worries! We‘ve got your back. Try BYJU‘S free classes today!

₹2,00,000

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Open in App

Solution

The correct option is A ₹80,000

Particulars Amount
(₹)

Application money received
(-)Transfer to share capital account 1,20,000
(1,00,000)

Excess money adjusted on allotment 20,000

Allotment money due
Less: Excess money 1,00,000
(20,000)

Allotment money received 80,000

Suggest Corrections

Similar questions

A company issued 4,000 equity shares of Rs. 10 each at par payable as under:

On application Rs. 3; on allotment Rs. 2; On first call Rs. 4 and on final call Rs. 1 per share.

Applications were received for 10,000 shares. The allotment was made pro-rata. How much amount will be received in cash on the allotment?

Join BYJU'S Learning Program

Particulars	Amount (₹)
Application money received (-)Transfer to share capital account	1,20,000 (1,00,000)
Excess money adjusted on allotment	20,000
Allotment money due Less: Excess money	1,00,000 (20,000)
Allotment money received	80,000