What is the amount of excess application money credited to Share Allotment and money refunded on rejected application in totality?

Question

Passage: Issue and Forfeiture of Shares On January 1, 2024, the Director of X Ltd. issued for public subscription 50,000 equity shares of Rs. 10 each at Rs. 12 per share payable, Rs. 5 on application (including premium), Rs. 4 on allotment and the balance on call on May 01, 2024. The issue was closed on February 10, 2024 by which date applications for 70,000 shares were received. Of the cash received Rs. 40,000 was returned and Rs. 60,000 was applied to the amount due on allotment, the balance of which was paid on February 16, 2024. All the shareholders paid the call due on May 01, 2024 with the exception of an allottee of 500 shares. These shares were forfeited on September 29, 2024 and reissued as fully paid at Rs. 8 per share on November 01, 2024. The company, as a matter of policy, does not maintain a calls-in-arrears account. % Question What amount will be credited to Equity Share Application Account on February 10, 2024?

Answer 1

Stage 1: Application Receipt.
Shares Applied = 70,000.
Shares Allotted = 50,000.
Resulting Surplus Applications = 20,000 shares.

Stage 2: Application Funds Per Share.
Application Amount = Rs. 5 (inclusive of premium).

Stage 3: Surplus Funds Received.
Surplus Applications = \( 20,000 \times 5 = Rs. 1,00,000 \).

Stage 4: Surplus Fund Allocation.
As per the provided information, Rs. 40,000 was returned, and Rs. 60,000 was applied to the allotment. Total accounted surplus application funds = Rs. 1,00,000.

Conclusion: \[\boxed{Rs. 1,00,000}\]

What is the amount of excess application money credited to Share Allotment and money refunded on rejected application in totality?

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The Correct Option is C

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