Wye Ltd. Issued 10,000 shares of Rs 10 each payable as follows- Application - Rs 4, Allotment Rs 3, Final Call - Rs 3.
Applications received for 12,500 shares. The company decided to reject 2,500 shares. After receiving allotment money, What will be the Bank balance of the company?

₹70,000

The correct answer is option 1- ₹70,000.

Number of shares issued = 10,000
Face value per share = ₹10
Application money per share= ₹4
Allotment money per share:  ₹3

Applications received = 12,500
Shares rejected = 12,500 - 10,000
                       = 2,500

Upto allotment ₹7 is received on 10,000 shares.

Bank balance = 10000 shares x 7
                    = ₹70000