Kishna Ltd. issued 15,000 shares of Rs. 100 each at a premium of Rs. 10 per share, payable as follows:
On application Rs. 30
On allotment Rs. 50 [including premium]
On first and final call Rs. 30
The company received 20,000 applications and a pro rata allotment was made to all. Any excess amount received on application is adjusted towards allotment and all the money due on allotment is received except Mr. Shyam who failed to pay allotment money on his 150 allotted shares. Calculate the amount received on allotment.
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → Rs. 5,94,000
In a pro rata allotment the excess application money is not refunded; it is adjusted towards the money due on allotment. So the cash received on allotment is the allotment money due, less the excess already received, less what the defaulter fails to pay.
The whole issue:
Allotment ratio = 20,000 applied : 15,000 allotted = 4 : 3
Allotment money due = 15,000 × Rs. 50 = Rs. 7,50,000
Excess application money = 5,000 × Rs. 30 = Rs. 1,50,000, adjusted towards allotment
Allotment money still to come = Rs. 7,50,000 − Rs. 1,50,000 = Rs. 6,00,000
Mr. Shyam’s default:
Shares applied for = 150 × 4/3 = 200
His excess application money = 50 × Rs. 30 = Rs. 1,500
His allotment due = 150 × Rs. 50 = Rs. 7,500
Unpaid by him = Rs. 7,500 − Rs. 1,500 = Rs. 6,000
Amount received on allotment = Rs. 6,00,000 − Rs. 6,000 = Rs. 5,94,000
Note: NTA picked this question from an NCERT (2026-27) exercise and changed the figures. Do not ignore NCERT while practising numericals.
NCERT (2026-27 edition):
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