Ravi Industries Ltd. A company in the manufacture of computers decided to issue for public subscription 40000 equity shares of ₹10 each at a premium of ₹2 payable as :
On Application –₹2 per share On Allotment _ ₹ 5 per share(including premium)
On first call _ ₹2 per share On Second and final call _ ₹3 per share,
Applications were received for 60000 shares. Allotment was made on pro rata basis to the applicants for 48000 shares, the remaining applications being refused. Money overpaid on applications was utilized towards sum due on allotment. Ram applied for 2400 shares failed to pay the allotment money due and shyam to whom 2000 shares were allotted filed to pay the two calls. These shares were subsequently forfeited after the second and final call was made. All the forfeited shares were reissued as fully paid at ₹8 per share.
1. The excess applications and application money adjusted towards allotment is :
a. 8000, ₹16000
b. 12000,₹24000
c. 20000,₹40000
d. 16000,₹32000
2. How many applications are rejected and how much money is returned?
a. 12000, ₹24000
b. 8000,₹16000
c. 20000,₹40000
d. 16000,₹32000
3. How many shares are allotted to Ram?
a. 2000 shares
b. 2400 shares
c. 600 shares
d. 1800 shares
4. The total forfeiture amount before reissue of forfeited shares is:
a. ₹14800
b. ₹18400
c. ₹16400
d. ₹14600
