Question
Accountancy Question on Accounting for Share and Debenture Capital
If a delay occurs beyond 8 days in refunding the subscription amount, failing to gather the minimum subscription, from the date of closure of the subscription list, the company shall be liable for interest at the rate of
A
0.15
B
0.12
C
0.06
D
Prevailing in State Bank of India
Answer
0.12
Explanation
Solution
According to the Companies Act, if the refund is delayed beyond 8 days, the company is liable to pay an interest of 12% per annum.
Hence, the correct answer is Option 2.