X Ltd invited applications for issuing 75,000 equity shares of ₹10 each at a premium of ₹2 per share, payable with application. Applications for 1,40,000 shares were received. An applicant who applied for 8,000 shares paid the entire share money at the time of application. What was the amount of application money received by the company considering that the amount payable on application including premium was ₹5 per share?

Correct option is B

Application money per share = ₹5 (including premium) Total shares applied = 1,40,000
So normally, application money received = 1,40,000×5= ₹7,00,000
However, one applicant applied for 8,000 shares and paid full share money at the time of application.
Full share money = Face value (₹10) + Premium (₹2) = ₹12 per share Extra amount paid per share by the applicant = ₹12 - ₹5 = ₹7
Therefore, excess money received from this applicant = 8,000×7= ₹56,000
Total application money received = ₹7,00,000 + ₹56,000= ₹7,56,000
Thus, the total amount received by the company on application is ₹7,56,000, making option (b) the correct answer.