Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Accounting for Shares

Question:

A company issued 4,000 equity shares of ₹10 each at par payable as under :
On application ₹3; on allotment ₹2; on first call 4 and on final call ₹1 per share.
Applications were received for 13000 shares. Applications for 3000 shares were rejected and pro-rata was made on the remaining shares.

What is the pro-rata ratio of allotment?

Options:

3:5

13:10

12:11

5:2

Correct Answer:

5:2

Explanation:

Applications for 13000 shares received. Out of it 3000 applicants have been rejected means pro-rata made on 10000 shares to whom 4000 should be allotted.
The Pro-rata ratio is 10000: 4000 = 10: 4 = 5:2