Anticraft Ltd. invited applications for 2,00,000 shares of ₹10 each at ₹2 premium, payable as ₹3/- on application. ₹6 on allotment (including premium) and ₹3/- on Call. Public had applied for 2,70,000 shares out of which application for 20,000 shares were rejected and remaining were allotted on pro-rata basis. Rahul who has been allotted 8000 shares failed to pay allotment and call money. His shares were forfeited and later on re-issued 6,000 shares @ ₹8/- per share as fully paid-up.

Based on the above information, answer Questions.

Amount refunded on rejection of applications:

₹ 60,000

The correct answer is Option (2) - ₹ 60,000.

Applications issued = 2,00,000
Applications received = 2,70,000
Applications rejected = 20,000
Application amount   = ₹3 per share

Amount refunded = Rejected applications x Application amount per share
                          = 20,000 x 3
                          = ₹60,000