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Question

X Ltd. had allotted 20,000 shares to the applicants of 28,000 shares on pro rata basis. The amount payable on application is Rs 2. Mr. P applied for 840 shares. The number of shares allotted and the amount carded forward for adjustment 840 against allotment money due from Mr. P =?

A
120 shares; Rs 240
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B
680 shares; Rs 320
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C
640 shares, Rs 400
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D
600 shares; Rs 480
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Solution

The correct option is D 600 shares; Rs 480
Pro- rata is a situation when amount on excess share is refunded,
SharesAlloted=TotalsharesallotedTotalsharesapplied×Shareappliedbyashareholder
Substitute the values in above equation
SharesAlloted=2000shares2800shares×840shares=600shares
Adjustmentmoney=MoneyonApplicationMoneytobeusedup
Substitute the values in above equation
Adjustmentmoney=Rs2×840sharesRs2×600shares=Rs480.

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