Kishna Ltd. issued 15,000 shares of Rs.100 each at a premium of Rs.10 per share, payable as follows:

On application Rs.30

On allotment Rs.50 [including premium]

On first and final call Rs.30

The company received 20,000 applications and a pro rata allotment was made to all. Any excess amount received on application is adjusted towards allotment and all the money due on allotment is received except Mr. Shyam who failed to pay allotment money on his 150 allotted shares. Calculate the amount received on allotment.

Rs 5,94,000

Correct answer: Option (4) → Rs 5,94,000

Concept: On pro-rata allotment, excess application money is adjusted against allotment, and money not received from a defaulter is deducted – see Accounting for Share Capital.

Applications 20,000 for 15,000 shares (ratio 4:3).
Total allotment due = 15,000 × 50 = Rs 7,50,000.
Excess application money = (20,000 – 15,000) × 30 = Rs 1,50,000, adjusted to allotment.
Allotment normally receivable = 7,50,000 – 1,50,000 = Rs 6,00,000.
Shyam (150 shares) applied for 150 × 4/3 = 200 shares; his excess = 50 × 30 = Rs 1,500; his allotment due = 150 × 50 = Rs 7,500, so his unpaid amount = 7,500 – 1,500 = Rs 6,000.
Amount actually received on allotment = 6,00,000 – 6,000 = Rs 5,94,000.