Correct statements regarding a corporation are:
(C) Capital Reserves are created from capital profits,
(D) The part of capital that can be called up only on winding up of the company is called Reserve Capital, and
(E) Minimum subscription must be at least 90% of the shares issued.
English
50 Questions
200 Marks
45 Mins English
R. ltd invited applications for 15,000 shares of ₹10 each at premium of ₹2 per share. The amount was payable as follows:
On Application ₹4.
On Allotment ₹5
On 1st call ₹2 and on final call ₹1
Applications were received for 20,000 shares. Application of 2,000 shares were rejected. Mohan, who applied for 3,000 shares was allotted in full and pro-rata allotment was made to the remaining applicants. All money was fully received with the exception of first call and final call on 3,000 shares held by Hari. These shares were forfeited and subsequently re-issued @ ₹8 per share.
On the basis of the above information answer the question.
