A company issued 40,000 preference shares of ₹100 per share at par payable as under:
On Application: 20%
On Allotment: 40%
On First & Final Call: Balance
Applications were received for 50000 shares. The allotment was made on a pro-rata basis. How much amount will be received in cash on the allotment?

₹1400000

Amount due on allotment= 40000 X 40 = ₹1600000
Excess application money adjusted= 10000 X 20= ₹200000
Amount received on allotment = 1600000 - 200000 = ₹1400000