Based on following passage answer questions below

A Ltd with an Authorised Capital of 10,00,000 is divided into shares of ₹10 each, issued 50,000 shares at a premium of ₹2 per share payable as follows
on Application ₹3 per share
on Allotment ₹5 per share (including premium)
on First and Final call Balance amount

Application were received for 60,000 shares and the directors allotted shares to all on proportionate basis. All money received except first and final call from Hari who had applied for 1200 shares. His shares were forfeited and later half of his forfeited shares were reissued at 8 per share as fully paid up.

Select the amount received on the Share allotment account.

₹2,20,000

The correct answer is option 3- ₹2,20,000.

Shares issued = 50,000
Application received = 60,000
Excess money will be adjusted towards allotment
Excess money  = 10,000 shares x 3
                        = 30,000

Allotment money due = 50,000 x 5
                                 = 2,50,000

Allotment money received = 2,50,000 -30,000
                                         = 2,20,000