Mr. Smith applied for 200 shares at Rs. 10 per share, but 160 shares were alloted to him. After paying Rs. 2 per share on application he did not pay the allotment money of Rs. 2 per share and first call money of Rs. 3 per share. What is the outstanding amount on the shares alloted to Mr. Smith?
A. Rs. 800
B. Rs. 1,280
C. Rs. 320
D. Rs. 720
Answer: Option D
This Question Belongs to Commerce >> Accounting
Why not 800 because question has not mentioned whether company has retained his oversubscription or returned the amount of oversubscription I.e. 40×2=80rs
720+80=800 could be the answer
880