Explanation:

- The company issued 50,000 shares at a price of 20 each.

- A 5% premium implies an additional 1 per share (5% of 20).

- Hence, the issue price per share is 21 (20 + 1 premium).

- 10 is payable on application per share.

- So, remaining 11 per share (21 total - 10) is payable on allotment.

- Therefore, the total allotment amount is 50,000 shares × 11 = 5,50,000.

Correct Answer: Option 3 - 5,50,000