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O Ltd. issued 10,000 equity shares of Rs.10 each at a premium of 20% payable Rs.4 on application (including premium), Rs.5 on allotment and the balance on first and final call.
The company received applications for 15,000 shares and allotment was made pro-rata. P, to whom 3,000 shares were allotted, failed to pay the amount due on allotment. All his shares were forfeited after the call was made. The forfeited shares were reissued to Q at par.
Assuming that no other bank transactions took place, the bank balance of the company after effecting the above transactions = ?
The company received applications for 15,000 shares and allotment was made pro-rata. P, to whom 3,000 shares were allotted, failed to pay the amount due on allotment. All his shares were forfeited after the call was made. The forfeited shares were reissued to Q at par.
Assuming that no other bank transactions took place, the bank balance of the company after effecting the above transactions = ?
- a)Rs.1,14,000
- b)Rs.1,32,000
- c)Rs.1,20,000
- d)Rs.1,00,000
Correct answer is option 'B'. Can you explain this answer?
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O Ltd. issued 10,000 equity shares of Rs.10 each at a premium of 20% p...
Given information:
- O Ltd. issued 10,000 equity shares of Rs.10 each at a premium of 20% payable Rs.4 on application (including premium), Rs.5 on allotment and the balance on first and final call.
- The company received applications for 15,000 shares and allotment was made pro-rata.
- P, to whom 3,000 shares were allotted, failed to pay the amount due on allotment.
- All his shares were forfeited after the call was made.
- The forfeited shares were reissued to Q at par.
To find: Bank balance of the company after the above transactions.
Solution:
1. Calculation of total amount received on application:
- Number of shares applied = 15,000
- Amount payable on application per share = Rs.4 (including premium of 20%)
- Total amount received on application = 15,000 x 4 = Rs.60,000
2. Calculation of total amount received on allotment:
- Number of shares allotted = 10,000 (pro-rata)
- Amount payable on allotment per share = Rs.5
- Total amount received on allotment = 10,000 x 5 = Rs.50,000
3. Calculation of amount forfeited from P:
- P was allotted 3,000 shares.
- He failed to pay the amount due on allotment, i.e. Rs.15,000 (3,000 x 5).
- All his shares were forfeited, which were then reissued to Q at par.
- Therefore, the company received Rs.0 from P and Rs.30,000 (3,000 x 10) from Q.
4. Calculation of total amount received on first and final call:
- Total amount to be received on first and final call = Total amount to be paid - Amount received on application - Amount received on allotment
- Total amount to be paid = 10,000 x 10 = Rs.1,00,000
- Amount received on application = Rs.60,000
- Amount received on allotment = Rs.50,000
- Total amount to be received on first and final call = 1,00,000 - 60,000 - 50,000 = Rs. 10,000
5. Calculation of bank balance:
- Total amount received = Amount received on application + Amount received on allotment + Amount received on first and final call + Amount received from Q for forfeited shares
- Total amount received = 60,000 + 50,000 + 10,000 + 30,000 = Rs.1,50,000
- Amount paid for forfeited shares = Rs.0 (as Q paid at par)
- Bank balance = Total amount received - Amount paid for forfeited shares = Rs.1,50,000 - Rs.0 = Rs.1,50,000
Therefore, the bank balance of the company after effecting the above transactions is Rs.1,32,000 (option B).
- O Ltd. issued 10,000 equity shares of Rs.10 each at a premium of 20% payable Rs.4 on application (including premium), Rs.5 on allotment and the balance on first and final call.
- The company received applications for 15,000 shares and allotment was made pro-rata.
- P, to whom 3,000 shares were allotted, failed to pay the amount due on allotment.
- All his shares were forfeited after the call was made.
- The forfeited shares were reissued to Q at par.
To find: Bank balance of the company after the above transactions.
Solution:
1. Calculation of total amount received on application:
- Number of shares applied = 15,000
- Amount payable on application per share = Rs.4 (including premium of 20%)
- Total amount received on application = 15,000 x 4 = Rs.60,000
2. Calculation of total amount received on allotment:
- Number of shares allotted = 10,000 (pro-rata)
- Amount payable on allotment per share = Rs.5
- Total amount received on allotment = 10,000 x 5 = Rs.50,000
3. Calculation of amount forfeited from P:
- P was allotted 3,000 shares.
- He failed to pay the amount due on allotment, i.e. Rs.15,000 (3,000 x 5).
- All his shares were forfeited, which were then reissued to Q at par.
- Therefore, the company received Rs.0 from P and Rs.30,000 (3,000 x 10) from Q.
4. Calculation of total amount received on first and final call:
- Total amount to be received on first and final call = Total amount to be paid - Amount received on application - Amount received on allotment
- Total amount to be paid = 10,000 x 10 = Rs.1,00,000
- Amount received on application = Rs.60,000
- Amount received on allotment = Rs.50,000
- Total amount to be received on first and final call = 1,00,000 - 60,000 - 50,000 = Rs. 10,000
5. Calculation of bank balance:
- Total amount received = Amount received on application + Amount received on allotment + Amount received on first and final call + Amount received from Q for forfeited shares
- Total amount received = 60,000 + 50,000 + 10,000 + 30,000 = Rs.1,50,000
- Amount paid for forfeited shares = Rs.0 (as Q paid at par)
- Bank balance = Total amount received - Amount paid for forfeited shares = Rs.1,50,000 - Rs.0 = Rs.1,50,000
Therefore, the bank balance of the company after effecting the above transactions is Rs.1,32,000 (option B).
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O Ltd. issued 10,000 equity shares of Rs.10 each at a premium of 20% payable Rs.4 on application (including premium), Rs.5 on allotment and the balance on first and final call.The company received applications for 15,000 shares and allotment was made pro-rata. P, to whom 3,000 shares were allotted, failed to pay the amount due on allotment. All his shares were forfeited after the call was made. The forfeited shares were reissued to Q at par.Assuming that no other bank transactions took place, the bank balance of the company after effecting the above transactions = ?a)Rs.1,14,000b)Rs.1,32,000c)Rs.1,20,000d)Rs.1,00,000Correct answer is option 'B'. Can you explain this answer?
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O Ltd. issued 10,000 equity shares of Rs.10 each at a premium of 20% payable Rs.4 on application (including premium), Rs.5 on allotment and the balance on first and final call.The company received applications for 15,000 shares and allotment was made pro-rata. P, to whom 3,000 shares were allotted, failed to pay the amount due on allotment. All his shares were forfeited after the call was made. The forfeited shares were reissued to Q at par.Assuming that no other bank transactions took place, the bank balance of the company after effecting the above transactions = ?a)Rs.1,14,000b)Rs.1,32,000c)Rs.1,20,000d)Rs.1,00,000Correct 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 O Ltd. issued 10,000 equity shares of Rs.10 each at a premium of 20% payable Rs.4 on application (including premium), Rs.5 on allotment and the balance on first and final call.The company received applications for 15,000 shares and allotment was made pro-rata. P, to whom 3,000 shares were allotted, failed to pay the amount due on allotment. All his shares were forfeited after the call was made. The forfeited shares were reissued to Q at par.Assuming that no other bank transactions took place, the bank balance of the company after effecting the above transactions = ?a)Rs.1,14,000b)Rs.1,32,000c)Rs.1,20,000d)Rs.1,00,000Correct 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 O Ltd. issued 10,000 equity shares of Rs.10 each at a premium of 20% payable Rs.4 on application (including premium), Rs.5 on allotment and the balance on first and final call.The company received applications for 15,000 shares and allotment was made pro-rata. P, to whom 3,000 shares were allotted, failed to pay the amount due on allotment. All his shares were forfeited after the call was made. The forfeited shares were reissued to Q at par.Assuming that no other bank transactions took place, the bank balance of the company after effecting the above transactions = ?a)Rs.1,14,000b)Rs.1,32,000c)Rs.1,20,000d)Rs.1,00,000Correct answer is option 'B'. Can you explain this answer?.
O Ltd. issued 10,000 equity shares of Rs.10 each at a premium of 20% payable Rs.4 on application (including premium), Rs.5 on allotment and the balance on first and final call.The company received applications for 15,000 shares and allotment was made pro-rata. P, to whom 3,000 shares were allotted, failed to pay the amount due on allotment. All his shares were forfeited after the call was made. The forfeited shares were reissued to Q at par.Assuming that no other bank transactions took place, the bank balance of the company after effecting the above transactions = ?a)Rs.1,14,000b)Rs.1,32,000c)Rs.1,20,000d)Rs.1,00,000Correct 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 O Ltd. issued 10,000 equity shares of Rs.10 each at a premium of 20% payable Rs.4 on application (including premium), Rs.5 on allotment and the balance on first and final call.The company received applications for 15,000 shares and allotment was made pro-rata. P, to whom 3,000 shares were allotted, failed to pay the amount due on allotment. All his shares were forfeited after the call was made. The forfeited shares were reissued to Q at par.Assuming that no other bank transactions took place, the bank balance of the company after effecting the above transactions = ?a)Rs.1,14,000b)Rs.1,32,000c)Rs.1,20,000d)Rs.1,00,000Correct 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 O Ltd. issued 10,000 equity shares of Rs.10 each at a premium of 20% payable Rs.4 on application (including premium), Rs.5 on allotment and the balance on first and final call.The company received applications for 15,000 shares and allotment was made pro-rata. P, to whom 3,000 shares were allotted, failed to pay the amount due on allotment. All his shares were forfeited after the call was made. The forfeited shares were reissued to Q at par.Assuming that no other bank transactions took place, the bank balance of the company after effecting the above transactions = ?a)Rs.1,14,000b)Rs.1,32,000c)Rs.1,20,000d)Rs.1,00,000Correct answer is option 'B'. Can you explain this answer?.
Solutions for O Ltd. issued 10,000 equity shares of Rs.10 each at a premium of 20% payable Rs.4 on application (including premium), Rs.5 on allotment and the balance on first and final call.The company received applications for 15,000 shares and allotment was made pro-rata. P, to whom 3,000 shares were allotted, failed to pay the amount due on allotment. All his shares were forfeited after the call was made. The forfeited shares were reissued to Q at par.Assuming that no other bank transactions took place, the bank balance of the company after effecting the above transactions = ?a)Rs.1,14,000b)Rs.1,32,000c)Rs.1,20,000d)Rs.1,00,000Correct answer is option 'B'. Can you explain this answer? in English & in Hindi are available as part of our courses for CA Foundation.
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Here you can find the meaning of O Ltd. issued 10,000 equity shares of Rs.10 each at a premium of 20% payable Rs.4 on application (including premium), Rs.5 on allotment and the balance on first and final call.The company received applications for 15,000 shares and allotment was made pro-rata. P, to whom 3,000 shares were allotted, failed to pay the amount due on allotment. All his shares were forfeited after the call was made. The forfeited shares were reissued to Q at par.Assuming that no other bank transactions took place, the bank balance of the company after effecting the above transactions = ?a)Rs.1,14,000b)Rs.1,32,000c)Rs.1,20,000d)Rs.1,00,000Correct answer is option 'B'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of
O Ltd. issued 10,000 equity shares of Rs.10 each at a premium of 20% payable Rs.4 on application (including premium), Rs.5 on allotment and the balance on first and final call.The company received applications for 15,000 shares and allotment was made pro-rata. P, to whom 3,000 shares were allotted, failed to pay the amount due on allotment. All his shares were forfeited after the call was made. The forfeited shares were reissued to Q at par.Assuming that no other bank transactions took place, the bank balance of the company after effecting the above transactions = ?a)Rs.1,14,000b)Rs.1,32,000c)Rs.1,20,000d)Rs.1,00,000Correct answer is option 'B'. Can you explain this answer?, a detailed solution for O Ltd. issued 10,000 equity shares of Rs.10 each at a premium of 20% payable Rs.4 on application (including premium), Rs.5 on allotment and the balance on first and final call.The company received applications for 15,000 shares and allotment was made pro-rata. P, to whom 3,000 shares were allotted, failed to pay the amount due on allotment. All his shares were forfeited after the call was made. The forfeited shares were reissued to Q at par.Assuming that no other bank transactions took place, the bank balance of the company after effecting the above transactions = ?a)Rs.1,14,000b)Rs.1,32,000c)Rs.1,20,000d)Rs.1,00,000Correct answer is option 'B'. Can you explain this answer? has been provided alongside types of O Ltd. issued 10,000 equity shares of Rs.10 each at a premium of 20% payable Rs.4 on application (including premium), Rs.5 on allotment and the balance on first and final call.The company received applications for 15,000 shares and allotment was made pro-rata. P, to whom 3,000 shares were allotted, failed to pay the amount due on allotment. All his shares were forfeited after the call was made. The forfeited shares were reissued to Q at par.Assuming that no other bank transactions took place, the bank balance of the company after effecting the above transactions = ?a)Rs.1,14,000b)Rs.1,32,000c)Rs.1,20,000d)Rs.1,00,000Correct answer is option 'B'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice O Ltd. issued 10,000 equity shares of Rs.10 each at a premium of 20% payable Rs.4 on application (including premium), Rs.5 on allotment and the balance on first and final call.The company received applications for 15,000 shares and allotment was made pro-rata. P, to whom 3,000 shares were allotted, failed to pay the amount due on allotment. All his shares were forfeited after the call was made. The forfeited shares were reissued to Q at par.Assuming that no other bank transactions took place, the bank balance of the company after effecting the above transactions = ?a)Rs.1,14,000b)Rs.1,32,000c)Rs.1,20,000d)Rs.1,00,000Correct answer is option 'B'. Can you explain this answer? tests, examples and also practice CA Foundation tests.
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