Question

Sun Ltd. issued 50,000 Equity Shares of ₹ 10 each. Amount payable on application is ₹ 3 per share, on allotment ₹ 4 per share and balance as first and final call. Applications were received for 1,20,000 equity shares. Shares were allotted to all the applicants on pro rata basis. Raman had applied for 3,600 Equity Shares. The number of shares allotted to Raman and excess application money adjusted towards allotment money was:

Options

• 1,500 shares; ₹ 6,300.

• 1,800 shares; ₹ 6,300.

• 1,500 shares; ₹ 6,000.

• 3,000 shares; ₹ 3,150.

Answer 1

1,500 shares; ₹ 6,300.

Explanation:

Pro rata ratio:

50,000 : 1,20,000 = 5 : 12

Shares allotted to Raman:

`3,600 xx 5/12 = 1,500` shares

Excess application money:

(3,600 − 1,500) × ₹ 3 = ₹ 6,300​

Therefore, Raman was allotted 1,500 shares and ₹ 6,300 was adjusted towards allotment.