Loading Tutorstips...
✦ FREE LEARNING — CLASS 11 & 12 — CBSE · PSEB — ACCOUNTS · ECONOMICS · BST ✦
Sugandh Ltd. issued 60,000 shares of ₹10 each at a premium of ₹2 per share, payable ₹3 on application, ₹5 (including premium) on allotment, and the balance on first and final call. Applications were received for 92,000 shares. The Directors resolved to allot as: (i) applicants for 40,000 shares given 30,000 shares; (ii) applicants for 50,000 shares given 30,000 shares; (iii) applicants for 2,000 shares given nil. Mohan, who had applied for 800 shares in Category (i), and Sohan, who was allotted 600 shares in Category (ii), failed to pay the allotment money. Calculate the amount received on allotment.
Mohan’s shortfall: shares allotted to Mohan = 800 × (30,000/40,000) = 600 shares. Application money received = 800 × ₹3 = ₹2,400. Application money adjusted to Share Capital (for 600 shares) = 600 × ₹3 = ₹1,800. Excess = ₹600. Allotment due (600 × ₹5) = ₹3,000, less excess adjusted (₹600) = Calls-in-Arrears by Mohan = ₹2,400.
Sohan’s shortfall: shares applied by Sohan = 600 × (50,000/30,000) = 1,000 shares. Application money received = 1,000 × ₹3 = ₹3,000. Application money adjusted to Share Capital (for 600 shares) = 600 × ₹3 = ₹1,800. Excess = ₹1,200. Allotment due (600 × ₹5) = ₹3,000, less excess adjusted (₹1,200) = Calls-in-Arrears by Sohan = ₹1,800.
MONEY RECEIVED ON ALLOTMENT
| Particulars | ₹ |
|---|---|
| Allotment due on 60,000 shares @ ₹5 | 3,00,000 |
| Less: Excess application money adjusted on allotment | (90,000) |
| Subtotal | 2,10,000 |
| Less: Calls-in-Arrears by Mohan | (2,400) |
| Less: Calls-in-Arrears by Sohan | (1,800) |
| Money received on allotment | 2,05,800 |
Accounting & Commerce Educator
Sarbjit Singh holds a B.Com and M.Com degree and has over 12 years of teaching experience in double entry bookkeeping, financial accounting, and business studies.
This guide covers "T.S. Grewal Class 12 Vol 2 Chapter 1 Q.25 - Share Capital", focusing on key definitions, step-by-step concepts, applications, and revision guidelines relevant to Chapter 1 - Share Capital.
It is primarily curated for Class 11 and Class 12 high school commerce, accounting, and economics students, as well as aspirants preparing for board exams or CA Foundation.
You can take our custom-built interactive practice quiz directly on this page to test your understanding of "T.S. Grewal Class 12 Vol 2 Chapter 1 Q.25 - Share Capital" instantly.