Question

White Ltd. offered 20,000 shares of ₹ 10 each to public. Applications were received for 30,000 shares. The company made pro rata allotment in the ratio of 5 : 6 and the remaining applications were rejected and money refunded to the applicants.

Options

• 66 shares

• 96 shares

• 90 shares

• 120 shares

Answer 1

96 shares

Explanation:

Pro rata allotment ratio = 5 : 6 i.e., 5 shares are allotted for every 6 shares applied.

Shares applied = `80 xx 6/5 = 96`

Therefore, Aarti applied for 96 shares.