Anthony Ltd. invited applications for 2,00,000 shares of ₹10 each payable ₹3 on application, ₹5 on allotment and balance on call. Public had applied for 3,20,000 shares out of which applications for 70,000 shares were rejected and remaining were allotted on pro-rata basis. Determine the amount to be received by company with allotment, if Mohan holding 10,000 shares paid all his dues along with allotment.

₹8,70,000

The correct answer is Option (1) → ₹8,70,000

Issued shares = 2,00,000

Applications received = 3,20,000
Application rejected = 70,000
Remaining applications = 3,20,000 - 70,000
                                     = 2,50,000
Pro-rata is made on these 2,50,000 shares.
For 2,50,000 shares 2,00,000 shares issued.

Excess money received = 50,000 shares x 3
                                     = ₹1,50,000

Allotment money due on allotment = 2,00,000 shares x 5
                                                       = ₹10,00,000

Excess money received on applications adjusted = 10,00,000 - 1,50,000
                                                                             = 8,50,000 (allotment money received)

* Mohan holding 10,000 shares paid all his dues along with allotment.
Mohan paid calls money = 10,000 x 2
                                      = 20,000

Amount received on allotment = 8,50,000 + 20,000
                                                = 8,70,000