Question

C Ltd invites application for 28000 share application for 35000 shares are received the company rejected 5000 share and give full allotment to application if 8000 shares and prorata allotment was given to rest of the application in the ratio
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Answer 1

Applications invited = 28,000 shares

Applications received = 35,000 shares

Applications rejected = 5,000 shares

Applications allotted shares = Applications received - Applications rejected

= 35,000 – 5,000  

= 30,000

Applications given full allotment = 8,000 shares

Applications on Pro-rata = Applications allotted shares - Applications given full allotment

= 30,000 – 8,000  

= 22,000 shares

Shares on pro-rata = Applications invited - Applications given full allotment

= 28,000 – 8,000  

= 20,000 shares

Share Allotment ratio = Applications on Pro-rata: Shares on pro-rata

= 22,000: 20,000

= 11: 10

So pro-rata allotment of shares was made in the ratio 11:10.