question_answer

Vijay, a director of the company proposed in a board meeting that to inculcate the habit of savings among people he wanted to bring a special issue of shares. His proposal was accepted by the company. The company issued 35,000 shares of Rs. 100 each, payable Rs. 30 on application, Rs. 50 on allotment and Rs. 20 on call. Tarun, a shareholder holding 25 shares could not pay his call money and Arjun another shareholder holding 30 shares paid the call money with allotment. Tarun, paid the amount due to him after four months explaining the reason for this delay, the company did not charge any interest from him. Calculate the amount received by the company on allotment.

Answer:

Calculation of Total Amount Received on Allotment

	Amt (Rs.)
Amount to be received on allotment \[\left( 35,000\times 50 \right)\]	17,50,000
(+) Calls-in-advance \[\left( 30\,\times \,20 \right)\]	600
	17,50,600