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A company issued 50000 shares of rs 20 each at a premium. Rs 10 were payable on application and balance on allotment.what will be the allotment amount?
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A company issued 50000 shares of rs 20 each at a premium. Rs 10 were p...
Share Issuance Details:
- Number of shares issued: 50,000
- Face value per share: Rs 20
- Premium per share: Not mentioned
Payment Schedule:
- Amount payable on application: Rs 10
- Balance payable on allotment: Not mentioned
Calculation of Allotment Amount:
To calculate the allotment amount, we need to know the premium per share. Since it is not mentioned in the question, we will assume a premium of Rs X per share for the purpose of calculation.
The total amount received on application can be calculated as follows:
Amount received on application = Number of shares issued x Amount payable on application
= 50,000 x Rs 10
= Rs 5,00,000
The face value of the shares can be calculated as follows:
Face value of shares = Number of shares issued x Face value per share
= 50,000 x Rs 20
= Rs 10,00,000
The premium received can be calculated as follows:
Premium received = Total amount received - Face value of shares
= Rs 5,00,000 - Rs 10,00,000
= Rs -5,00,000
Since the premium is negative, it means that the company has not received any premium on the shares. Therefore, the allotment amount will only be the face value of the shares.
Allotment Amount:
The allotment amount is equal to the face value of the shares, which is Rs 20 per share.
Conclusion:
The allotment amount for each share is Rs 20.
- Number of shares issued: 50,000
- Face value per share: Rs 20
- Premium per share: Not mentioned
Payment Schedule:
- Amount payable on application: Rs 10
- Balance payable on allotment: Not mentioned
Calculation of Allotment Amount:
To calculate the allotment amount, we need to know the premium per share. Since it is not mentioned in the question, we will assume a premium of Rs X per share for the purpose of calculation.
The total amount received on application can be calculated as follows:
Amount received on application = Number of shares issued x Amount payable on application
= 50,000 x Rs 10
= Rs 5,00,000
The face value of the shares can be calculated as follows:
Face value of shares = Number of shares issued x Face value per share
= 50,000 x Rs 20
= Rs 10,00,000
The premium received can be calculated as follows:
Premium received = Total amount received - Face value of shares
= Rs 5,00,000 - Rs 10,00,000
= Rs -5,00,000
Since the premium is negative, it means that the company has not received any premium on the shares. Therefore, the allotment amount will only be the face value of the shares.
Allotment Amount:
The allotment amount is equal to the face value of the shares, which is Rs 20 per share.
Conclusion:
The allotment amount for each share is Rs 20.
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A company issued 50000 shares of rs 20 each at a premium. Rs 10 were payable on application and balance on allotment.what will be the allotment amount?
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