ABC Ltd. invited applications for issue of 100, 000 shares of Rs.10 each at a premium...

 

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ABC Ltd. invited applications for issue of 100, 000 shares of Rs.10 each at a premium of Rs.2, Rs.5 called at the time of application, Rs.5 (including premium) at the time of allotment and balance Rs.2 at the time of 1st call. Applications were received for 1,30,000 shares. Application money was returned to the extent to 10,000 shares and pro rate allotment was made to the remaining applicants of 120,000. PQR to whom 500 shares were allotted failed to pay allotment and calls money. Based allotted on the above facts, cash/bank a/c would be debited by at the time of receipt of allotment money. ABC Ltd. invited applications for issue of 100, 000 shares of Rs.10 each at a premium of Rs.2, Rs.5 called at the time of application, Rs.5 (including premium) at the time of allotment and balance Rs.2 at the time of 1st call. Applications were received for 1,30,000 shares. Application money was returned to the extent to 10,000 shares and pro rate allotment was made to the remaining applicants of 120,000. PQR to whom 500 shares were allotted failed to pay allotment and calls money. Based allotted on the above facts, cash/bank a/c would be debited by at the time of receipt of allotment money.

Answer rating: 100% (QA)

The cashbank account will be debited by Rs12000 at the time of receipt of allotment ... View the full answer