R.Ltd invited applications for 15,000 shares of ₹10 each at premium of ₹2 per share. The amount was payable as follows:
On Application ₹4
On allotment ₹5
On 1st call ₹2
On final call ₹1
Applications were received for 20,000 shares. The application of 2,000 shares was rejected. Mohan, who applied for 3,000 shares was allotted in full and prorata allotment was made to the remaining applicants. All money was fully received with the exception of the first call and final call on 3,000 shares held by Hari. These shares were forfeited and subsequently re-issued @ ₹8 per share.
On the basis of the above information answer the question.
Calculate the amount received in cash on share allotment.
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → ₹63,000
On pro-rata allotment, the excess application money of the pro-rata applicants is adjusted towards allotment, so less cash comes in on allotment.
Applications accepted = 20,000 − 2,000 rejected = 18,000
Pro-rata group = 18,000 − 3,000 (Mohan, allotted in full) = 15,000 applied for 12,000 shares
Excess application money = 3,000 shares × ₹4 = ₹12,000
Allotment money due = 15,000 × ₹5 = ₹75,000
Cash received on allotment = ₹75,000 − ₹12,000 = ₹63,000
NCERT (2026-27 edition):
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