Read the following passage and answer the following questions.
BCD Ltd. invited applications for 1,00,000 shares of ₹10 each which is payable as follows-
Application - ₹2
Allotment - ₹3
First and final Call - Balance amount
Applications for 3,00,000 shares is received by the company. Company made pro-rata on the all applicants and adjust excess money towards allotment only. Mr. A shareholder who had applied for 3,000 shares failed to pay call money due to which company forfeited his shares and reissued at ₹8 per share as fully paid.
How many shares are allotted to Mr. A?
Answer & explanation
Correct answer: option 2
The correct answer is option 2- 1,000.
Those who have applied for 3,00,000 shares are allotted 1,00,000 shares.
Mr. A applied for 3,000 shares
Shares allotted to Mr. A = 1,00,000/3,00,000 x 3,000
= 1/3 x 3,000
= 1,000