X Ltd. decided to issue 12,000 shares of Rs 100 each, payable at Rs 30 on application, Rs.40 on Allotment, Rs 20 on first call and balance on second and final call. Applications were received for 13,000 shares, the directors decided to reject applications of 1,000 shares. The amount of refund is:
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → ₹30,000
Applications for 1,000 shares were rejected, so their application money is returned in full.
Refund = 1,000 shares × ₹30 = ₹30,000
Entry: Share Application A/c Dr. ₹30,000 To Bank A/c ₹30,000.
NCERT (2026-27 edition):
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