Accountancy Part AAccounting for Shares

If applicants for 80,000 shares were allotted 60,000 shares on pro-ra…

If applicants for 80,000 shares were allotted 60,000 shares on pro-rata basis, the shareholder who was allotted 1,200 shares must have applied for:

Answer & explanation

Correct answer: option 3

The correct answer is Option (3) → 1,600 Shares

In a pro-rata allotment every applicant gets shares in the same proportion as the total shares allotted bear to the total shares applied for.

Ratio of applied to allotted = 80,000 : 60,000 = 4 : 3
Shares applied for = 1,200 × 4/3 = 1,600 shares

NCERT (2026-27 edition):
Over Subscription – “… Second Alternative : When the directors opt to make a proportionate allotment to all applicants (called ‘pro-rata’ allotment), the excess application money received is normally adjusted towards the amount due on allotment.”