XYZ Ltd. Issued 10,000 equity shares of Rs 100 each payable as - Rs 20 on Application, Rs 30 on Allotment, and Balance on Final call. Applications were received for 40,000 shares. It was decided to allot shares on Pro rata basis. 25% shares were allotted to every applicant, it was decided to transfer the balance of application money towards due allotment and refund the balance amount. How much money will be refunded?
Answer & explanation
Correct answer: option 4
40000*20 = 8,00,000
10000*20= 2,00,000 Share Capital
10000*30= 3,00,000 share allotment
Excess money received = 3,00,000 Refunded