A company has 500000 Authorised share capital and issued 20000 shares @ Rs 10 each. Applications were received for 5000 shares. How much amount will be debited in Bank A/c if company uses lumpsum method of issue?

₹50,000

In the lump sum method of issuing shares, the entire amount of the shares is collected at the time of application.
Number of shares issued = 20000
Face value per share = Rs 10
Applications received = 5000
Amount to be debited in the Bank A/c = Number of shares applied for * Face value per share Amount to be debited in the Bank A/c
                                                          = 5000 * Rs 10 = Rs 50000