Based on following, answer question.
High Light India Ltd. invited applications for 30,000 shares of ₹100 each at a premium of ₹20 per share payable as follows:
| On Applications | ₹ 40 (including ₹10 premium) |
| On Allotment | ₹ 30 (including ₹10 premium) |
| On First Call | ₹ 30 |
| On Second and final Call | ₹ 20 |
Applications were received for 40,000 shares and pro-rata allotment was made on the application for 35,000 shares. Excess application money was utilised towards allotment.
Rohan to whom 600 shares were allotted failed to pay the allotment money and his shares were forfeited immediately after allotment.
Aman who applied for 1,050 shares failed to pay first call and his shares were forfeited immediately after first call.
Second and final call was made. All the money due on second call has been received.
Of the shares forfeited, 1,000 shares were reissued as fully paid-up for ₹80 per share, which included the whole of Aman's shares.
Amount received on allotment is:
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → ₹6,86,000
In a pro-rata allotment the excess application money is adjusted towards allotment, so only the balance is received in cash.
Allotment due = 30,000 × ₹30 = ₹9,00,000
Excess application money adjusted = 5,000 × ₹40 = ₹2,00,000
Balance due on allotment = ₹9,00,000 − ₹2,00,000 = ₹7,00,000
Rohan applied for 600 × 35,000/30,000 = 700 shares; his excess money = 100 × ₹40 = ₹4,000.
Rohan's unpaid allotment = 600 × ₹30 − ₹4,000 = ₹14,000
Amount received on allotment = ₹7,00,000 − ₹14,000 = ₹6,86,000
NCERT (2026-27 edition):
NCERT (2026-27 edition):
|

