Case Based MCQ for Accounts Chapter 9 – Accounting for Share Capital
Question no.’s 1 to 4 are based on the hypothetical situation given below:
(a) Sangita Limited invited applications for issuing 60,000 shares of ₹10 each at par. The amount was payable as follows:
On application ₹2 per share
On allotment ₹3 per share
On first and final call ₹5 per share
Application were received for 92,000 shares. Allotment was made as below:
i. to applicants of 40000 shares – Full
ii. to applicants of 50000 shares – 40%
iii. to applicants of 2000 shares – Nil
₹1,08,000 was realised on account of allotment (excluding the amount carried from application money) and 2,50,000 on account of call.
The directors decided to forfeit shares of those applicants to whom full allotment was made and on which allotment money was overdue.
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