Question:
Akash Ltd. registered capital is ₹ 50,00,000 in shares of ₹ 10 each. The company issued 2,00,000 of such shares, payable @ ₹ 3 per share on application, @ ₹ 3 per share on allotment and balance on first and final call. What will be the amount due on allotment, if shareholder holding 20,000 shares paid all call money at the time of allotment only?
Akash Ltd. registered capital is ₹ 50,00,000 in shares of ₹ 10 each. The company issued 2,00,000 of such shares, payable @ ₹ 3 per share on application, @ ₹ 3 per share on allotment and balance on first and final call. What will be the amount due on allotment, if shareholder holding 20,000 shares paid all call money at the time of allotment only?
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In accounting for share capital, "Due" and "Received" are two different things.
• Amount Due: Total shares $\times$ Installment rate.
• Amount Received: Amount Due + Calls-in-Advance $-$ Calls-in-Arrears. Always look for the keyword "due" to avoid getting distracted by advance payments.
• Amount Due: Total shares $\times$ Installment rate.
• Amount Received: Amount Due + Calls-in-Advance $-$ Calls-in-Arrears. Always look for the keyword "due" to avoid getting distracted by advance payments.
Updated On: May 13, 2026
- ₹ 4,00,000
- ₹ 6,00,000
- ₹ 60,000
- ₹ 1,50,000
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The Correct Option is B
Solution and Explanation
Concept:
The amount "due on allotment" refers to the total legal claim the company has on all issued shares at the allotment stage. This is a fixed calculation based on the number of shares issued and the per-share allotment rate, regardless of whether shareholders pay early (Calls-in-Advance) or late (Calls-in-Arrears).
Step 1: Identify the total shares issued and the allotment rate.
• Shares Issued: 2,00,000 shares.
• Allotment Rate: ₹ 3 per share.
Step 2: Calculate the total amount due on allotment. \[ \text{Amount Due on Allotment} = \text{Total Shares Issued} \times \text{Rate per Share on Allotment} \] \[ \text{Amount Due on Allotment} = 2,00,000 \times ₹ 3 = ₹ 6,00,000 \]
Step 3: Address the Calls-in-Advance info.
The problem mentions that a shareholder holding 20,000 shares paid their call money early at the time of allotment. While this affects the total cash received (which would be $6,00,000 + \text{advance payment}$), it does not change the amount that was originally due on the allotment call itself.
Step 1: Identify the total shares issued and the allotment rate.
• Shares Issued: 2,00,000 shares.
• Allotment Rate: ₹ 3 per share.
Step 2: Calculate the total amount due on allotment. \[ \text{Amount Due on Allotment} = \text{Total Shares Issued} \times \text{Rate per Share on Allotment} \] \[ \text{Amount Due on Allotment} = 2,00,000 \times ₹ 3 = ₹ 6,00,000 \]
Step 3: Address the Calls-in-Advance info.
The problem mentions that a shareholder holding 20,000 shares paid their call money early at the time of allotment. While this affects the total cash received (which would be $6,00,000 + \text{advance payment}$), it does not change the amount that was originally due on the allotment call itself.
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