Question

Q Ltd. has allocated 1,00,000 shares to the applicants of 1,40,000 shares on pro rata basis. The amount payable on application is Rs. 2. Mr. N applied for 4,200 shares. The number of shares allocated and amount carried forward for adjustment against allotment money due from Mr. N will be ______.

• A. 600 shares; Rs. 1,200
• B. 3,200 shares; Rs. 2,000
• C. 3,400 shares; Rs. 1,600
• D. 3,000 shares; Rs.2,400

Answer 1

The correct option is D 3,000 shares; Rs.2,400

Here, application is for 1,40,000 shares and issued shares only 1,00,000 and allocation is pro rata basis which means shares will allocated in ratio of 1,40,000:1,00,000 i.e. 14:10(7:5). N applied for 4200 shares and as per pro rata basis the allocation of share will be in ratio of 7:5, so number of shares allocated will be 3000. N paid Rs 2*4200 i.e. 8400 for application and allotment was done for amount of Rs2*3000 i.e. Rs 6000. Hence, amount carried forward for adjustment against allotment money due from Mr. N will be Rs 8400-Rs 6000 i..e Rs 2400