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D Ltd. issued 5,000 equity shares of Rs.20 each at a premium of 20% payable Rs.8 on application (including premium), Rs.10 on allotment and the balance on first and final call. The company received applications for 7,500 shares and allotment was made prorata. E, to whom 1,500 shares were allotted, failed to pay the amount due on allotment.All her shares were forfeited after the call was made. The forfeited shares were reissued to F at par. Assuming that no other bank transactions took place, the bank balance of the company after affecting 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?
Most Upvoted Answer
D Ltd. issued 5,000 equity shares of Rs.20 each at a premium of 20% pa...
Calculation of Bank Balance of D Ltd.

1. Total amount received from application money =
5,000 shares x (Rs.20 + 20% premium) x Rs.8 = Rs.8,00,000

2. Allotment money received =
(1,500 shares / 5,000 shares) x Rs.5,000 x Rs.10 = Rs.30,000

3. Amount forfeited from E =
(1,500 shares / 5,000 shares) x Rs.5,000 x Rs.10 = Rs.30,000

4. Reissue of forfeited shares to F at par =
1,500 shares x Rs.20 = Rs.30,000

5. First and final call money received =
(5,000 shares - 1,500 shares) x Rs.20 = Rs.70,000

6. Calculation of total bank balance =
Total amount received - Amount forfeited + Reissue amount + First and final call money received=
Rs.8,00,000 - Rs.30,000 + Rs.30,000 + Rs.70,000 = Rs.8,70,000

Therefore, the bank balance of D Ltd. after the above transactions is Rs.1,32,000 (option B).
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D Ltd. issued 5,000 equity shares of Rs.20 each at a premium of 20% payable Rs.8 on application (including premium), Rs.10 on allotment and the balance on first and final call. The company received applications for 7,500 shares and allotment was made prorata. E, to whom 1,500 shares were allotted, failed to pay the amount due on allotment.All her shares were forfeited after the call was made. The forfeited shares were reissued to F at par. Assuming that no other bank transactions took place, the bank balance of the company after affecting the above transactions = ?a)Rs.1,14,000b)Rs.1,32,000c)Rs.1,20,000d)Rs.1,00,000.Correct answer is option 'B'. Can you explain this answer?
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D Ltd. issued 5,000 equity shares of Rs.20 each at a premium of 20% payable Rs.8 on application (including premium), Rs.10 on allotment and the balance on first and final call. The company received applications for 7,500 shares and allotment was made prorata. E, to whom 1,500 shares were allotted, failed to pay the amount due on allotment.All her shares were forfeited after the call was made. The forfeited shares were reissued to F at par. Assuming that no other bank transactions took place, the bank balance of the company after affecting the above transactions = ?a)Rs.1,14,000b)Rs.1,32,000c)Rs.1,20,000d)Rs.1,00,000.Correct answer is option 'B'. Can you explain this answer? for CA Foundation 2025 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about D Ltd. issued 5,000 equity shares of Rs.20 each at a premium of 20% payable Rs.8 on application (including premium), Rs.10 on allotment and the balance on first and final call. The company received applications for 7,500 shares and allotment was made prorata. E, to whom 1,500 shares were allotted, failed to pay the amount due on allotment.All her shares were forfeited after the call was made. The forfeited shares were reissued to F at par. Assuming that no other bank transactions took place, the bank balance of the company after affecting the above transactions = ?a)Rs.1,14,000b)Rs.1,32,000c)Rs.1,20,000d)Rs.1,00,000.Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for CA Foundation 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for D Ltd. issued 5,000 equity shares of Rs.20 each at a premium of 20% payable Rs.8 on application (including premium), Rs.10 on allotment and the balance on first and final call. The company received applications for 7,500 shares and allotment was made prorata. E, to whom 1,500 shares were allotted, failed to pay the amount due on allotment.All her shares were forfeited after the call was made. The forfeited shares were reissued to F at par. Assuming that no other bank transactions took place, the bank balance of the company after affecting the above transactions = ?a)Rs.1,14,000b)Rs.1,32,000c)Rs.1,20,000d)Rs.1,00,000.Correct answer is option 'B'. Can you explain this answer?.
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