Read the following passage and answer the question.

EFG Ltd. invited applications for 10,000 shares of ₹100 each at a premium of 10 each which is payable as follows-
Application - ₹50
Allotment - ₹35 including premium
Call - ₹25
Applications for 15,000 shares is received by the company. The company rejected the applications for 2,500 shares and made pro-rata on the remaining applicants. Mr. A who is allotted 400 shares failed to pay the allotment and call money due to which company forfeited his shares and reissued at ₹105 per share.

How much money is received on allotment by the company?

₹2,16,000

The correct answer is option 1- ₹2,16,000.

Total amount due on allotment = 10,000 x 35
                                                 = 3,50,000

Excess amount received on application (2,500 x 50) = 1,25,000
Amount not received by the shareholder A  = 9,000
Amount received by the company = 3,50,000 - 1,25,000 - 9,000
                                                      = ₹2,16,000

NOTE-

Who allotted 10,000 shares applied for 12,500 shares
Shares allotted to A = 400
Shares applied by A = 12,500/10,000 x 400
                                = 500
Money received on application by A = 500 x 50
                                                        = ₹25,000
Excess money received by A on application = 100 x 50
                                                                    = 5,000
Money due on allotment by A = 400 shares x 35
                                               = 14,000
Excess money adjusted to allotment = 5,000
Money not received by A on allotment = 14,000 - 5,000
                                                            = ₹9,000