X ltd. invited applications for 5,000, 12% Debentures of ₹10 each, issued at premium of 20%. Applications were received for 8,000 Debentures and it was dealt as follows:
i. Full allotment to 1,000 Debentures
ii. Rejected applications of 800 Debentures
iii. Remaining applications on pro rata basis
How much money was refunded by company if no excess money is adjusted against future installments?

₹36,000

The correct answer is option 2- ₹36,000.

Premium amount = 10 x 20/100
                            = 2

Total Application money received =  8,000 x 12
                                                   = 96,000

Transferred to 12% Debentures A/c = 5,000 x 10
                                                        = 50,000

Transferred to Security Premium Reserve A/c = 5,000 x 2
                                                                       = 10,000
Amount refunded = Total amount received - Transferred to debentures account - Transferred to premium account
                            = 96,000 - 50,000 - 10,000
                            = 36,000 (REFUNDED)