PK Ltd. issued 30,000, 12% Debentures of ₹100 each at 10% premium. Full amount was payable on Application. Public had applied for 40,000 Debentures, pro-rata allotment was made to applicants of 36,000 debentures. Determine the amount to be refunded at the time of allotment of Debentures.

Rs. 11,00,000

The correct answer is Option (2) → Rs. 11,00,000

30,000 debentures are issued.
Applications received = 40,000
Pro-rata made on 36,000.
4,000 applications rejected.
Amount on rejected applications = 4,000 x (100 + 10 premium)
                                                    = ₹4,40,000

On 6,000 applications, pro-rata is made.
Amount refunded on excess application = 6,000 x (100 + 10 premium)
                                                               = ₹6,60,000

Total amount refunded = 4,40,000 + 6,60,000
                                     = ₹11,00,000