Practice Test

Discount on issue of shares should not exceed 25% of the face value of shares.

D issued 2,00,000 shares of Rs.100 each at a premium of Rs.20 per share payable as follows :On application Rs.20 , on allotment Rs.50(including premium) , on first call Rs.30 , On second & final call Rs.20 . Application were received for Rs.3,00,000 shares and pro rata allotment was made to applicants of 2,40,000 shares .Money excess received on application were 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 & on his subsequent failure to pay the first call,his shares were forfeited & 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 E's forfeited shares being reissued Total amount paid by G

The Authorized Share Capital of A Ltd. is Rs.20,00,000 of Rs.100 each issued at a premium of 50%. The issued / called up and paid-up Equity Share Capital of the company is Rs.10,00,000. The company announced a Rights issue of four shares of Rs.100 each at a premium of 160% for every five shares held by the existing shareholders. The market value of the share at the time of rights issue is Rs.440. All the rights have been subscribed and paid-up by the existing shareholders. The balance in Equity Share Capital A/c after the right issue is ________.