Raj Ltd. was registered with 70,000 equity shares. They issued 40,000 equity shares @ 10 each payable as follow :On Application Rs. 4 per shareOn Allo - Accountancy MCQ CUET Accountancy 2022 23 Aug Shift 2 PYQs 2026 | ExamTest.live

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Raj Ltd. was registered with 70, 000 equity shares. They issued 40, 000 equity shares @ 10 each payable as follow :On Application Rs. 4 per shareOn Allotment Rs. 3 per shareand Balance on 2 callsThe issue was over subscribed by 50, 000 shares. The directors decided upon making prorata allotment to 60, 000 shares while remaining were returned.Amount to be returned to the applicants due to non-allotment of shares will be :

Solution & Step-by-step Explanation

Total applications received = 90, 000 shares.Pro-rata allotment was made to applicants of 60, 000 shares.Remaining applications rejected and returned = Total Applications - Applications assigned pro-rataRemaining applications = 90, 000 - 60, 000 = 30, 000 shares.Application money returned = Number of rejected shares \times Application money per shareAmount returned = 30, 000 \times 4 = Rs. 1, 20, 000 .

Try it yourself before checking the explanation above.

Raj Ltd. was registered with 70, 000 equity shares. They issued 40, 000 equity shares @ 10 each payable as follow :On Application Rs. 4 per shareOn Allotment Rs. 3 per shareand Balance on 2 callsThe issue was over subscribed by 50, 000 shares. The directors decided upon making prorata allotment to 60, 000 shares while remaining were returned.Amount to be returned to the applicants due to non-allotment of shares will be :

Rs. 1, 50, 000

Rs. 2, 40, 000

Rs. 1, 20, 000

Rs. 1, 60, 000

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