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Zebra Ltd invites applications for 50,000 shares for which 2/- per share is payable on application. Applications received for 80,000 shares and 70,000 shares are allotted on prorata basis. How much application money will be adjusted to allotment, when Mr.Lion who has allotted 200 shares.
  • a)
    Rs. 100
  • b)
    Rs. 160
  • c)
    Rs. 240
  • d)
    Rs. 80
Correct answer is option 'B'. Can you explain this answer?
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Most Upvoted Answer
Zebra Ltd invites applications for 50,000 shares for which 2/- per sha...
1st find the no. of shares applied by Mr. Lion , as it is said that pro-rata allotment is made .
Formula to find applied :

no. of sh. alloted to lion ×
no. of sh. alloted by firm ÷
no. of shares issued by the firm .

given:
no. of shares issued by firm =50,000
no. of shares subscribed = 80,000
no. of shares allotted by firm = 70,000
application =RS. 2
no. of shares allotted to lion = 200

(using formula)
Lion applied for= 200×70000/50000= 280 shares

therefore ., Lion applied for 280 sh. and he got allotted for 200 shares . This excess amount paid by lion is for 80 shares (280-200)
Amount adjusted = 80*2= 160
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Zebra Ltd invites applications for 50,000 shares for which 2/- per sha...
Given:
- Zebra Ltd invites applications for 50,000 shares.
- The application money payable per share is Rs. 2/-.
- Applications received for 80,000 shares.
- 70,000 shares are allotted on a pro-rata basis.

To find:
The amount of application money that will be adjusted to allotment when Mr. Lion is allotted 200 shares.

Solution:

1. Calculation of total application money received:
Total shares for which applications are received = 80,000 shares
Application money per share = Rs. 2/-
Total application money received = Total shares * Application money per share
Total application money received = 80,000 shares * Rs. 2/-
Total application money received = Rs. 1,60,000/-

2. Calculation of shares allotted on a pro-rata basis:
Total shares for which applications are received = 80,000 shares
Total shares available for allotment = 50,000 shares
Ratio of shares allotted = Total shares available for allotment / Total shares for which applications are received
Ratio of shares allotted = 50,000 shares / 80,000 shares
Ratio of shares allotted = 5/8

Shares allotted to Mr. Lion = 200 shares
Shares allotted on a pro-rata basis = Ratio of shares allotted * Shares allotted to Mr. Lion
Shares allotted on a pro-rata basis = 5/8 * 200 shares
Shares allotted on a pro-rata basis = 125 shares

3. Calculation of application money adjusted to allotment:
Application money adjusted to allotment = Shares allotted on a pro-rata basis * Application money per share
Application money adjusted to allotment = 125 shares * Rs. 2/-
Application money adjusted to allotment = Rs. 250/-

Therefore, the application money that will be adjusted to allotment when Mr. Lion is allotted 200 shares is Rs. 250/-. Thus, the correct answer is option 'B' - Rs. 160.
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D Ltd. issued 2,00,000 shares of Rs.100 each at a premium of Rs.20 per share payable as follows : On application Rs.20 On allotment Rs.50 (including premium) On first call Rs.30 On second and final call Rs.20 Applications were received for 3,00,000 shares and pro rata allotment was made to applicants of 2,40,000 shares. Money excess received on application was employed on account of sum due on allotment as part of share capital. E, to whom 4,000 shares were allotted, failed to pay the allotment money and on his subsequent failure to pay the first call, his shares were forfeited and F, the holder of 6,000 shares failed to pay the two calls and his shares were forfeited after the second call. Of the forfeited shares, 8,000 shares were reissued to G at a discount of 10%, the whole of E’s forfeited shares being reissued. Q.Application money adjusted against allotment = __________. a.

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Use the following information for questions 10 to 23D Ltd. issued 2,00,000 shares of Rs.100 each at a premium of Rs.20 per share payable as follows :On application Rs.20On allotment Rs.50 (including premium)On first call Rs.30On second and final call Rs.20Applications were received for 3,00,000 shares and pro rata allotment was made to applicants of 2,40,000 shares. Money excess received on application was employed on account of sum due on allotment as part of share capital. E, to whom 4,000 shares were allotted, failed to pay the allotment money and on his subsequent failure to pay the first call, his shares were forfeited and F, the holder of 6,000 shares failed to pay the two calls and his shares were forfeited after the second call. Of the forfeited shares, 8,000 shares were reissued to G at a discount of 10%, the whole of Es forfeited shares being reissued.Q.Amount received on application = ___________.

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Zebra Ltd invites applications for 50,000 shares for which 2/- per share is payable on application. Applications received for 80,000 shares and 70,000 shares are allotted on prorata basis. How much application money will be adjusted to allotment, when Mr.Lion who has allotted 200 shares.a)Rs. 100b)Rs. 160c)Rs. 240d)Rs. 80Correct answer is option 'B'. Can you explain this answer?
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Zebra Ltd invites applications for 50,000 shares for which 2/- per share is payable on application. Applications received for 80,000 shares and 70,000 shares are allotted on prorata basis. How much application money will be adjusted to allotment, when Mr.Lion who has allotted 200 shares.a)Rs. 100b)Rs. 160c)Rs. 240d)Rs. 80Correct answer is option 'B'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Zebra Ltd invites applications for 50,000 shares for which 2/- per share is payable on application. Applications received for 80,000 shares and 70,000 shares are allotted on prorata basis. How much application money will be adjusted to allotment, when Mr.Lion who has allotted 200 shares.a)Rs. 100b)Rs. 160c)Rs. 240d)Rs. 80Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Zebra Ltd invites applications for 50,000 shares for which 2/- per share is payable on application. Applications received for 80,000 shares and 70,000 shares are allotted on prorata basis. How much application money will be adjusted to allotment, when Mr.Lion who has allotted 200 shares.a)Rs. 100b)Rs. 160c)Rs. 240d)Rs. 80Correct answer is option 'B'. Can you explain this answer?.
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