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.The maximum amount that can be called up on the first call by the company is :

Solution & Step-by-step Explanation

According to the guidelines and the model Articles of Association (Table F) of the Companies Act, no single call can exceed 25% of the face value of the shares.Face value = Rs. 10 .Maximum permissible call amount = 25% of 10 = Rs. 2.5 .

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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.The maximum amount that can be called up on the first call by the company is :

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