question_answer

Rishi Limited invited applications for issuing 40,000 shares of Rs.10 each at par. The amount was payable as follows:

On Application Rs.2 per share;

On Allotment Rs.3 per share

On First and Final Call Rs.5 per share

Applications were received for 70,000 shares. Allotment was made on the following basis:

To applicants for 20,000 shares - Full

To applicants for 40,000 shares - 50%

To applicants for 10,000 shares - Nil

Allotment money to be adjusted on application will be:

A) 40,000

B) 80,000 

C) 20,000

D) 60,000