The correct answer is C. Rs. 320.
Explanation:
Mr. Smith applied for 200 shares at Rs. 10 per share, but 160 shares were allotted to him. So, the total amount he paid on application is 200 shares * Rs. 2 per share = Rs. 400.
After paying Rs. 2 per share on application, he did not pay the allotment money of Rs. 2 per share and first call money of Rs. 3 per share. So, the outstanding amount on the shares allotted to Mr. Smith is 160 shares * Rs. 2 per share + 160 shares * Rs. 3 per share = Rs. 320.
Option A is incorrect because it is the total amount Mr. Smith paid on application.
Option B is incorrect because it is the total amount Mr. Smith would have paid if he had paid the allotment money and first call money.
Option D is incorrect because it is the total amount Mr. Smith would have paid if he had paid the allotment money, first call money, and final call money.