Multiple choice

A Joint Stock Company issued 20,000 Equity Shares of Rs. 10 each. Amount due on these shares was as under: Rs. 2 on Application (1st January) Rs. 3 on Allotment (1st February) Rs. 3 on First Call (1st July) Rs. 2 on Final Call (1st Nov) Ajit paid full amount on 1,000 shares upto Final Call along with First Call. Vijay paid First Call and Final Call money along with Allotment on 500 shares. According to rules, 6% interest is payable on amount received in advance.

What is the value of interest payable to Ajit on Call-in-Advance?

  1. Rs. 40

  2. Rs. 38

  3. Rs. 45

  4. Rs. 123
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A Correct answer
Explanation

 Interest payable on Ajit's Shares is Rs. 40 & calculated as follows: Advance Amount: Rs. 2,000 (1,000 shares x Rs. 2 of Final Call) Rate of Interest @ 6% Period: 1st July to 1st Nov = 4 months (2,000) x 6% x 4/12 = Rs. 40

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