Multiple choice

The directors of E limited made the final call of Rs. 50 per share on 1st August 2012 indicating the last date of payment of call money to be 31st August. Mr. White holding 5000 shares paid the call money on October 15th 2012. If the company adopts table 'F', the amount of interest on calls-in-arrears to be paid by Mr. White would be _________.

  1. Rs. 1562.5

  2. Rs. 3125

  3. Rs. 1875

  4. Rs. 1500
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Table F interest on calls-in-arrears is 10% per annum. Amount = 5000 * 50 = 250,000. Delay = 1.5 months (Sept 1 to Oct 15). Interest = 250,000 * 0.10 * (1.5 / 12) = 3125.

AI explanation

The total call money owed is 50 multiplied by 5000 shares, which equals 250000 rupees. Under Table F, the interest rate on calls-in-arrears is 5 percent per annum, and the delay from August 31 to October 15 is 45 days. The interest is calculated as 250000 multiplied by 5 divided by 100 multiplied by 45 divided by 365, which equals Rs. 3125.

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