03 January 2018
Zebra Ltd. invites applications for subscriptions to 50,000 shares for which Rs. 2 per share is to be paid on applications. Applications were received for 80,000 shares and shares were allotted on pro-rata basis to applicants of 70,000 shares. If the Excess application money is refunded, how much money will be refunded to Mr. Lion who has been allotted 200 shares?
09 January 2018
Dear Mr. Fazal. As per the information, the shares have been subscribed 1.4 times. That means the applicant who was allotted 200 shares has applied for 280 shares. So he should be refunded Rs.160 i.e. Rs.2 for the excess 80 shares.
CAclubindia
