Read the following passage and answer the question.
EFG Ltd. invited applications for 10,000 shares of ₹100 each at a premium of 10 each which is payable as follows-
Application - ₹50
Allotment - ₹35 including premium
Call - ₹25
Applications for 15,000 shares is received by the company. The company rejected the applications for 2,500 shares and made pro-rata on the remaining applicants. Mr. A shareholder who is allotted 400 shares failed to pay the allotment and call money due to which the company forfeited his shares and reissued at ₹105 per share.
How many shares are applied by the shareholder named A?
Answer & explanation
Correct answer: option 2
The correct answer is option 2- 500.
Who allotted 10,000 shares applied for 12,500 shares
Shares allotted to A = 400
Shares applied by A = 12,500/10,000 x 400
= 125/100 x 400
= 500