All Courses
Explore Courses UPSC Exam UPSC Test Series Free Notes EduRev Infinity Get the App Login Join for Free
Sign in Open App
CA Foundation Exam  >  CA Foundation Questions  >  T Ltd. proposed to issue 6000 equity shares o... Start Learning for Free
SaveJoin the Discussion on the App
T Ltd. proposed to issue 6000 equity shares of ₹100 each at a premium of 40%. The minimum amount of application money to be collected per share as per the Companies Act, 2013 is (A)₹5.00 (B)₹6.00 (C)₹7.00 Please help me with the answer for this question?
Clear all your CA Foundation doubts with EduRev
Most Upvoted Answer
T Ltd. proposed to issue 6000 equity shares of ₹100 each at a premium ...
Minimum Application Money for Equity Shares

Introduction:
When a company decides to issue new shares, it needs to comply with the regulations mentioned in the Companies Act, 2013. The minimum amount of application money that needs to be collected per share is one of the important regulations that need to be followed by the company.

Calculation:
In this case, T Ltd. proposed to issue 6000 equity shares of ₹100 each at a premium of 40%. So, the issue price of each share is calculated as follows:
Face Value of the Share = ₹100
Premium on the Share = 40% of ₹100 = ₹40
Issue Price of the Share = Face Value + Premium = ₹100 + ₹40 = ₹140

As per the regulations mentioned in the Companies Act, 2013, the minimum amount of application money that needs to be collected per share is 5% of the nominal value of the share or the whole of the nominal value of the share, whichever is higher. In this case, the nominal value of the share is ₹100. So, the minimum amount of application money that needs to be collected per share is calculated as follows:
5% of the Nominal Value of the Share = 5% of ₹100 = ₹5
Whole of the Nominal Value of the Share = ₹100

Conclusion:
So, the minimum amount of application money to be collected per share as per the Companies Act, 2013 is ₹100. Therefore, option (A) is incorrect. The correct answer is option (B) ₹6.00.
Explore Courses for CA Foundation exam

Similar CA Foundation Doubts

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 = ___________.

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.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.Net balance in Securities Premium Account = ________.

Top Courses for CA FoundationView all

Top Courses for CA Foundation

T Ltd. proposed to issue 6000 equity shares of ₹100 each at a premium of 40%. The minimum amount of application money to be collected per share as per the Companies Act, 2013 is (A)₹5.00 (B)₹6.00 (C)₹7.00 Please help me with the answer for this question?
Question Description
T Ltd. proposed to issue 6000 equity shares of ₹100 each at a premium of 40%. The minimum amount of application money to be collected per share as per the Companies Act, 2013 is (A)₹5.00 (B)₹6.00 (C)₹7.00 Please help me with the answer for this question? 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 T Ltd. proposed to issue 6000 equity shares of ₹100 each at a premium of 40%. The minimum amount of application money to be collected per share as per the Companies Act, 2013 is (A)₹5.00 (B)₹6.00 (C)₹7.00 Please help me with the answer for this question? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for T Ltd. proposed to issue 6000 equity shares of ₹100 each at a premium of 40%. The minimum amount of application money to be collected per share as per the Companies Act, 2013 is (A)₹5.00 (B)₹6.00 (C)₹7.00 Please help me with the answer for this question?.
Solutions for T Ltd. proposed to issue 6000 equity shares of ₹100 each at a premium of 40%. The minimum amount of application money to be collected per share as per the Companies Act, 2013 is (A)₹5.00 (B)₹6.00 (C)₹7.00 Please help me with the answer for this question? in English & in Hindi are available as part of our courses for CA Foundation. Download more important topics, notes, lectures and mock test series for CA Foundation Exam by signing up for free.
Here you can find the meaning of T Ltd. proposed to issue 6000 equity shares of ₹100 each at a premium of 40%. The minimum amount of application money to be collected per share as per the Companies Act, 2013 is (A)₹5.00 (B)₹6.00 (C)₹7.00 Please help me with the answer for this question? defined & explained in the simplest way possible. Besides giving the explanation of T Ltd. proposed to issue 6000 equity shares of ₹100 each at a premium of 40%. The minimum amount of application money to be collected per share as per the Companies Act, 2013 is (A)₹5.00 (B)₹6.00 (C)₹7.00 Please help me with the answer for this question?, a detailed solution for T Ltd. proposed to issue 6000 equity shares of ₹100 each at a premium of 40%. The minimum amount of application money to be collected per share as per the Companies Act, 2013 is (A)₹5.00 (B)₹6.00 (C)₹7.00 Please help me with the answer for this question? has been provided alongside types of T Ltd. proposed to issue 6000 equity shares of ₹100 each at a premium of 40%. The minimum amount of application money to be collected per share as per the Companies Act, 2013 is (A)₹5.00 (B)₹6.00 (C)₹7.00 Please help me with the answer for this question? theory, EduRev gives you an ample number of questions to practice T Ltd. proposed to issue 6000 equity shares of ₹100 each at a premium of 40%. The minimum amount of application money to be collected per share as per the Companies Act, 2013 is (A)₹5.00 (B)₹6.00 (C)₹7.00 Please help me with the answer for this question? tests, examples and also practice CA Foundation tests.
Explore Courses for CA Foundation exam

Top Courses for CA Foundation

Explore Courses

Suggested Free Tests

Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
10M+ students study on EduRev
Get App
© EduRev
Education Revolution
Signup to see your scores go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup