High Light India Ltd. invited applications for 30,000 Shares of Rs. 100 each at a premium of Rs. 20 per share payable as follows:On Application Rs. 40 (including Rs.10 premium)On Allotment Rs. 30 (including Rs.10 premium)On First Call Rs. 30On Second and Final Call Rs. 20 Applications were received for 40,000 shares and pro-rata allotment was made on the application for 35,000 share. Excess application money was utilised towards allotment.Rohan to whom 600 shares were allotted failed to pay the allotment money and his shares were forfeited immediately after allotment.Aman who applied for 1,050 shares failed to pay first call and his share were forfeited immediately after first Call.Second and final call was made. All the money due on second call have been received.Of the shares forfeited, 1,000 share were reissued as fully paid-up for Rs. 80 per share, which included the whole of Aman's shares. Amount recieved on allotment:
- ARs. 6,00,000
- BRs. 6,50,000
- CRs. 6,86,000
- DRs. 7,00,000
Solution & Step-by-step Explanation
1. Calculate Total Pro-Rata Excess Money:Shares Applied under Pro-rata category sharesShares Allotted sharesExcess Applications sharesExcess Application Money (carried forward to Allotment).2. Calculate Total Allotment Amount Due:
3. Determine Rohan's Default on Allotment:Rohan's Allotted shares Pro-rata Ratio Shares Applied by Rohan sharesRohan's Excess Application Shares sharesRohan's Advance Application Money Rohan's Total Allotment Due Amount Rohan's Net Arrears Default 4. Compute Net Total Allotment Cash Received:
3. Determine Rohan's Default on Allotment:Rohan's Allotted shares Pro-rata Ratio Shares Applied by Rohan sharesRohan's Excess Application Shares sharesRohan's Advance Application Money Rohan's Total Allotment Due Amount Rohan's Net Arrears Default 4. Compute Net Total Allotment Cash Received: