ABC Limited issued at par 2,00,000 equity shares of ₹ 10 each payable at ₹ 3 on application, ₹ 2.5 on the allotment, ₹ 2 on the first call and remaining on the final call. All the shares were fully subscribed. One of the

CS Executive · Corporate and Management Accounting · PYQS · June 2023
ABC Limited issued at par 2,00,000 equity shares of ₹ 10 each payable at ₹ 3 on application, ₹ 2.5 on the allotment, ₹ 2 on the first call and remaining on the final call. All the shares were fully subscribed. One of the shareholders who held 10,000 shares paid the full amount along with the first call itself. The final call was made after four months from the date of the first call. The amount of interest on calls in advance is
(A) ₹ 500
(B) ₹ 1,000
(C) ₹ 833.33
(D) ₹ 416.67

Answer & Explanation:

Correct Answer: Option (B)

Official answer key: (B).

Topics: Corporate Accounting

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