A company has ₹5,00,000 Authorised share capital and issued 5,500 shares @ Rs 10 each. Applications were received for 5,000 shares. How much amount will be debited in Bank A/c if full amount is called on application.

₹50,000

The correct answer is option 3- ₹50,000.

The entire amount of the shares is collected at the time of application.
Number of shares issued = 5,500
Face value per share = ₹10
Applications received = 5,000
Amount to be debited in the Bank A/c = Number of shares applied for * Face value per share Amount 
                                                       =  5,000  X ₹10
                                                       = ₹50,000

Journal entry made for this-
Bank A/c Dr.          ₹50,000
    To Share application A/c    ₹50,000

So, bank A/c is debited with ₹50,000.