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CA Foundation · Accounting · Company Accounts

Bharat Ltd. issued 20,000 equity shares of ₹10 each, payable ₹3 on application, ₹4 on allotment and ₹3 on first and final call. Applications were received for 30,000 shares. Applications for 4,000 shares were rejected and the remaining applicants were allotted 20,000 shares pro rata. How much excess application money is available to be adjusted against allotment money?

The excess application money available for adjustment against allotment is ₹18,000. Total received is ₹90,000, less ₹60,000 needed for 20,000 shares, less ₹12,000 refunded on 4,000 rejected shares. Equivalently, 6,000 surplus shares on pro-rata applicants times ₹3 gives ₹18,000.

  1. A₹30,000Correct
  2. B₹42,000
  3. C₹18,000
  4. D₹60,000

Explanation

Total application money received = 30,000 × 3 = ₹90,000. Required on 20,000 shares = ₹60,000. Rejected applications of 4,000 shares = ₹12,000 are refunded. Excess retained = 90,000 − 60,000 − 12,000 = ₹18,000. Pro-rata applicants applied for 26,000 shares and got 20,000, so excess is 6,000 × 3 = ₹18,000. This matches option 3, so the stated key must be rechecked: correct figure is ₹18,000.

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