On January 1, 2024, the Director of X Ltd. issued for public subscription 50,000 equity shares of Rs. 10 each at Rs. 12 per share payable, Rs. 5 on ap - CUET Accountancy MCQ CUET Accountancy 2025 15 May Shift 1 2026 | ExamTest.live

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On January 1, 2024, the Director of X Ltd. issued for public subscription 50,000 equity shares of Rs. 10 each at Rs. 12 per share payable, Rs. 5 on application (including premium), Rs. 4 on allotment and the balance on call on May 01, 2024. The issue was closed on February 10, 2024 by which date applications for 70,000 shares were received. Of the cash received Rs. 40,000 was returned and Rs. 60,000 was applied to the amount due on allotment, the balance of which was paid on February 16, 2024. All the shareholders paid the call due on May 01, 2024 with the exception of an allottee of 500 shares. These shares were forfeited on September 29, 2024 and reissued as fully paid at Rs. 8 per share on November 01, 2024. The company, as a matter of policy, does not maintain a calls-in-arrears account.What is the amount of excess application money credited to share allotment and money refunded on rejected application in totality?

Solution & Step-by-step Explanation

Let's extract the relevant values directly from the problem statement:Amount of excess application money forwarded and credited to the share allotment account = Rs. 60, 000 Amount of application money refunded on rejected applications = Rs. 40, 000 The question asks for the combined total of these two components: Combined Total Amount = Excess Applied to Allotment + Refunded Amount Combined Total Amount = 60, 000 + 40, 000 = Rs. 1, 00, 000

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On January 1, 2024, the Director of X Ltd. issued for public subscription 50,000 equity shares of Rs. 10 each at Rs. 12 per share payable, Rs. 5 on application (including premium), Rs. 4 on allotment and the balance on call on May 01, 2024. The issue was closed on February 10, 2024 by which date applications for 70,000 shares were received. Of the cash received Rs. 40,000 was returned and Rs. 60,000 was applied to the amount due on allotment, the balance of which was paid on February 16, 2024. All the shareholders paid the call due on May 01, 2024 with the exception of an allottee of 500 shares. These shares were forfeited on September 29, 2024 and reissued as fully paid at Rs. 8 per share on November 01, 2024. The company, as a matter of policy, does not maintain a calls-in-arrears account.What is the amount of excess application money credited to share allotment and money refunded on rejected application in totality?

Rs. 40,000

Rs. 60,000

Rs. 1,00,000

Rs. 1,20,000

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