If 10,000 shares of ₹10 each were forfeited for non-payment of final call money of ₹3 per share andonly 7,000 of these shares were re-issued @₹ 11 per share as fully paid up, then what is the minimumamount that company must collect at the time of re-issue of the remaining 3,000 shares?a) ₹ 21,000b) ₹ 9,000c) ₹ 16,000d) ₹ 30,000
Question
If 10,000 shares of ₹10 each were forfeited for non-payment of final call money of ₹3 per share andonly 7,000 of these shares were re-issued @₹ 11 per share as fully paid up, then what is the minimumamount that company must collect at the time of re-issue of the remaining 3,000 shares?a) ₹ 21,000b) ₹ 9,000c) ₹ 16,000d) ₹ 30,000
Solution
The total amount unpaid on the forfeited shares is 10,000 shares * ₹3 per share = ₹30,000.
When 7,000 of these shares were re-issued at ₹11 per share, the company collected 7,000 shares * ₹11 per share = ₹77,000.
However, since these shares were already paid up to ₹7 per share (₹10 original price - ₹3 unpaid), the company only needed to collect an additional ₹4 per share. So, the actual amount collected for the unpaid portion is 7,000 shares * ₹4 per share = ₹28,000.
This means the company still needs to collect ₹30,000 - ₹28,000 = ₹2,000 for the unpaid portion of the forfeited shares.
Since there are 3,000 shares left to re-issue, the minimum amount the company must collect at the time of re-issue is ₹2,000 / 3,000 shares = ₹0.67 per share.
However, since the shares must be re-issued as fully paid up, the company must also collect the original ₹7 per share that was already paid before the shares were forfeited. So, the minimum amount the company must collect at the time of re-issue is ₹7 per share + ₹0.67 per share = ₹7.67 per share.
Therefore, the minimum amount that company must collect at the time of re-issue of the remaining 3,000 shares is 3,000 shares * ₹7.67 per share = ₹23,010.
However, this amount is not listed in the options. There may be a mistake in the question or the options.
Similar Questions
A company forfeited 3,000 shares of ₹10 each, on which only ₹5 per share (including ₹1 premium) hasbeen paid. Out of these few shares were re-issued at a discount of ₹1 per share were and ₹6,000 weretransferred to Capital Reserve. How many shares were re-issued?
13. Mayfair Ltd. forfeited 2,000 shares of Rs.10 each, Rs.7 called up, on which only Rs. 4 pershare (including Rs.2 premium) and Rs.2 per share on first call has not been paid. Out of these500 shares were re-issued as fully paid that Rs. 750 was transferred to Capital Reserve. On re-issue, how much amount will be transferred to Bank A/c?(a) Rs. 3,250(b) Rs. 4,250(c) Rs. 2,250(d) Rs. 5,500
A, B and C are in partnership business. A used ₹2,00,000 belonging to the firm without the informationto other partners and made a profit of ₹35,000 by using this amount. Which decision should be takenby the firm to rectify this situation?a) A need to return only ₹2,00,000 to the firm.b) A is required to return ₹35,000 to the firm.c) A is required to pay back ₹35,000 only equally to B and C.d) A need to return ₹2,35,000 to the firm.
Co. Ltd. issucd 15,000 shares of 100 each at a discount of 20 pershare payable as follows20 on Application50 on Allotment (including discount)30 on Call.Application were received for 18,000 shares, excess application money wererefundedA shareholder holding 1,000 shares did not pay call money. His shares wereforfeited after call. Out of these 600 shares were re-issued to Mr. Roy
A firm has a market value equal to its book value. Currently, the firm has excess cash of $2,600 and other assets of $5,000. Equity is worth $7,600. The firm has 950 shares of stock outstanding and net income of $1,150. The firm has decided to spend all of its excess cash on a share repurchase program. How many shares of stock will be outstanding after the stock repurchase is completed?
Upgrade your grade with Knowee
Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.