Question

X Ltd issued 50,000 shares of 10 each payable 2 on application. It received applications for 90,000 shares. It rejected applications for 10,000 shares and allotment was on pro-rata basis. If Ram applied for 360 shares, he was allotted (a) 300 (b) 250 shares. (c) 225 shares (d) 200 shares​

Answer 1

Answer:

No of shares allotted to Ram=Total no of shares issued/total no of shares applied×no of shares allotted by to Ram

=50,000/80,000×360

=225 shares

Hence,the correct answer is option (c)225.

Hope it helps you.

Answer 2

Applications invited = 50,000 shares

Applications received = 90,000 shares

Applications rejected = 10,000 shares

Applicant’s allotted shares = Applications received - Applications rejected

= 90,000 – 10,000 = 80,000

Shares Allotted = 50,000

Share Allotment ratio = Applicant’s allotted shares : Shares Allotted  

= 80,000 : 50,000

= 8 : 5

This means people who applied for 8 shares were allotted 5 shares.

The Applicant who applied for 360 shares were allotted 360 x (5 ÷ 8) shares

= 45 x 5

= 225 shares

So the answer is option (c) 225 shares.