CA Foundation · Accounting · Company Accounts
Sharma Ltd. issued 20,000 equity shares of ₹10 each at a premium of ₹3 per share, payable as: ₹3 on application, ₹5 on allotment (including premium) and the balance on first and final call. All money was received except the first and final call on 500 shares. What is the amount of Calls-in-arrears?
The first and final call is ₹5 per share, being ₹13 total less ₹8 already called. On 500 unpaid shares, calls-in-arrears equal ₹2,500.
- A₹5,000Correct
- B₹3,500
- C₹2,500
- D₹1,500
Explanation
Total due per share = 10 + 3 = 13. Application 3 + allotment 5 = 8, so call = 13 - 8 = ₹5 per share. Calls-in-arrears = 500 × 5 = ₹2,500. Hmm, recheck: the call is ₹5, so 500 × 5 = ₹2,500.
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