Read the following passage and answer the 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 13,000 shares. Applications for 3,000 shares were rejected and pro-rata was made on the remaining shares.
What is the pro-rata ratio of allotment?
Answer & explanation
Correct answer: option 4
The correct answer is option 4- 5:2.
Applications for 13,000 shares received. Out of it 3,000 applicants have been rejected means pro-rata made on 10,000 shares to whom 4,000 should be allotted.
The Pro-rata ratio = 10,000: 4,000
= 10: 4
= 5:2