Question

Shiril Ltd. had allotted 40,000 shares to the applicants of ₹56,000 shares on a pro rata basis. The amount payable on application is ₹2 per share. Mahira applied for 1,680 shares. Calculate the number of shares allotted to Mahira:

[2 marks]

• A. 1,200 shares
• B. 1,680 shares
• C. 2,352 shares
• D. 2,000 shares

Answer 1

The correct option is A 1,200 shares

Shares Allotted to Mahira = $\frac{SharesApplied}{SharesAllotted}\times SharesIssued$

= $\frac{1,680}{56,000}\times 40,000$

= 1,200 shares