Question

Petromax Ltd. had invited applications for 80,000, 8% Preference Shares of ₹ 100 each. Applications were received for 1,20,000 shares and allotment was made on pro rata basis to all the applicants. Virat was allotted 1,600 shares, the number of shares he applied were

Options

• 3,200 Shares.

• 2,400 Shares.

• 3,000 Shares.

• 1,600 Shares.

Answer 1

2,400 Shares.

Explanation:

Shares offered : Shares applied = 80,000 : 1,20,000 = 2 : 3

Therefore, if Virat was allotted 1,600 shares:

`1,600 xx 3/2 = 2,400` shares