AM Ltd. issued 45,000 shares of ₹10 each at par. The shares were payable ₹3 on the application, ₹5 on the allotment, and the balance on the first and final call. It received ₹1,23,000 on application. What amount should the company receive on the allotment?

₹2,05,000

The correct answer is option 2- ₹2,05,000.

Shares issued =45,000 at par @10 each
Application is of ₹3
Amount received on application = ₹1,23,000

Shares subscribed by the public = 1,23,000/3
                                              = 41,000 shares

Allotment money = 41,000 shares X 5
                        = ₹2,05,000