Question

E Ltd. had allotted 10,000 shares to the applicants of 14,000 shares on pro-rata basis. The amount payable on application was Rs. 2. F applied for 420 shares, The number of shares allotted and the amount carried forward for adjustment against allotment money due from F will be:

• A. 60 shares; Rs. 120
• B. 340 shares; Rs. 160
• C. 320 shares; Rs. 200
• D. 300 shares; Rs. 240

Answer 1

The correct option is D 300 shares; Rs. 240

Application received = 14000
No. Of shares allotted = 10,000
No. of shares allotted to F = 420 X 10/14 = 300 shares
Application money received from F
F sent application money for 420 shares X 2 = Rs. 840
Application money adjusted against 300 shares
Application (300 X 2) 600
Excess Money 240
Rs 240 is to be adjusted against allotment