question_answer

Zombtech Ltd was formed with a capital of Rs. 5,00,000 divided into shares of Rs. 10 each. Out of these, 5,000 shares were issued to the vendors as fully paid as purchase consideration, 10,000 shares were offered to the public and of these 11,000 shares were applied for. The directors rejected the excess applications and allotted 10,000 shares. The directors called Rs. 6 per share and received the entire amount except a call of Rs. 2 per share on 1,500 shares. What is the amount of issued capital?

Answer:

Issued Capital

Shares issued to vendors (5,000x10)	= Rs. 50,000
Shares issued to public (10,000x10)	= Rs. 1,00,000
Issued Capital	= Rs. 1,50,000