Dev Raj Limited issued a prospectus inviting application for 30,000 equity shares of Rs. 10 each at a premium of Rs. 4 per share payable as follows: With Application (including premium Rs. 1) Rs. 3, On Allotment (including premium Rs. 1) Rs. 4, On First call (including premium Rs. 1) Rs. 4, On Second and Final call (including premium Rs. 1) Rs. 3. Applications were received for 45,000 shares. 20% of the applications received were rejected and their application money was refunded. Remaining applicants were allotted shares on pro-rata basis. Mr. Samrat, who has applied for 600 shares, failed to pay the allotment money and his shares were forfeited immediately after that. What will be the total amount received on allotment?
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → Rs. 1,00,300
In a pro-rata allotment, the excess application money is adjusted against the allotment money, so the amount received on allotment is the allotment due, less the excess already paid, less whatever a defaulting shareholder failed to pay.
Applications rejected = 20% of 45,000 = 9,000; applications left = 36,000 for 30,000 shares (ratio 6 : 5)
Allotment due = 30,000 × Rs. 4 = Rs. 1,20,000
Excess application money = (36,000 − 30,000) × Rs. 3 = Rs. 18,000
Net allotment due = Rs. 1,20,000 − Rs. 18,000 = Rs. 1,02,000
Samrat applied for 600, so he was allotted 600 × 5/6 = 500 shares
Samrat's allotment due = 500 × Rs. 4 = Rs. 2,000
Less his excess application money = 100 × Rs. 3 = Rs. 300
Samrat's unpaid amount = Rs. 2,000 − Rs. 300 = Rs. 1,700
Amount received on allotment = Rs. 1,02,000 − Rs. 1,700 = Rs. 1,00,300
Rs. 1,02,000 is what the company would have received if Samrat had paid; his default takes out Rs. 1,700. NTA only turned Devam Limited into Dev Raj and Mr. Sudhir into Mr. Samrat; every figure is the book's own.
Note: This question is from NCERT (2026-27). NTA sets numerical questions from NCERT too, so do not ignore NCERT while practising numericals.
NCERT (2026-27 edition):
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