Question

Green Ltd. had allotted 10,000 shares to the applicants of 14,000 shares on pro rata basis. The amount payable on application is ₹ 2 per share. Mohan applied for 420 shares. The number of shares allotted and the amount carried forward for adjustment against allotment money due from Mohan are

Options

• 60 shares, ₹ 120.

• 320 shares, ₹ 200.

• 340 shares, ₹ 100.

• 300 shares, ₹ 240.

Answer 1

300 shares, ₹ 240.

Explanation:

Pro-rata ratio = 10,000 : 14,000 = 5 : 7. Therefore, shares allotted to Mohan:

`420 xx 5/7 = 300` shares

Excess application money:

(420 − 300) × ₹ 2 = ₹ 240