Shares Originally Issued:

The company received applications for 1 lakh (100,000) shares. This means that shareholders expressed their interest in buying a total of 100,000 shares.

Shares Rejected:

Out of the total applications received, the company decided to reject 25,000 shares. This could be due to various reasons such as non-compliance with eligibility criteria or oversubscription of shares.

Pro-Rata Allotment:

After rejecting the 25,000 shares, the remaining shares need to be allocated among the applicants. The pro-rata allotment method ensures that all applicants receive a fair share based on their initial application. In this case, the pro-rata allotment was made in the ratio of 3:2.

To calculate the pro-rata allotment, we need to determine the total number of shares available for allocation after the rejection. Since 25,000 shares were rejected, the total available for allotment is 100,000 - 25,000 = 75,000 shares.

Calculation of Pro-Rata Allotment:

In a 3:2 ratio, the total ratio is 3 + 2 = 5. This means that for every 5 shares applied, only 3 shares will be allotted.

To calculate the pro-rata allotment for each applicant, we need to divide their applied shares by the total ratio and multiply it by the available shares for allotment.

For example, if an applicant applied for 10,000 shares, the pro-rata allotment would be (10,000 / 5) * 3 = 6,000 shares.

Excess Application Money Adjustment:

The excess application money is the amount paid by the applicants for the shares they did not receive due to rejection or pro-rata allotment. This excess amount needs to be adjusted against the shares allotted to the applicants.

For example, if an applicant applied for 10,000 shares but received only 6,000 shares through pro-rata allotment, the excess application money will be calculated based on the difference between the applied and allotted shares.

Assuming the application price per share is Rs. 100, the excess application money will be (10,000 - 6,000) * Rs. 100 = Rs. 400,000.

This excess application money will be adjusted by reducing the amount payable for the allotted shares. So, if the total amount payable for the allotted shares is Rs. 600,000, it will be reduced by the excess application money of Rs. 400,000. Therefore, the final amount payable will be Rs. 200,000.

Summary:

- Shares Originally Issued: 1,00,000 shares
- Shares Rejected: 25,000 shares
- Pro-Rata Allotment Ratio: 3:2
- Available Shares for Allotment: 75,000 shares
- Excess Application Money: Adjusted against the shares allotted

By following the above steps, we can determine the shares originally issued, the shares adjusted on allotment, and how the excess application money is adjusted.