Identify the ratio in which shares are issued on Pro-rata basis.

Eicher Ltd. issued 50,000 shares of ₹10 each at a premium of ₹5 per share payable as follows:

On application	₹3 per share
On allotment	₹5 (including ₹3 Premium)
On First Call	₹5 (including ₹2 Premium)
On Final Call	Balance amount

Application were received for 72,000 shares. Directors allotted 50,000 shares to the applicants applying for 65,000 shares, the remaining applications being refused. Money overpaid on application was utilised towards sum due on allotment. All the money was duly received with the exception of first call from Rahul, who applied for 2,600 shares. Due to non payment of 1^st call his share were forfeited immediately. Later on these share were re-issued at minimum issue price.

On the basis of following case study, answer the question.

Identify the ratio in which shares are issued on Pro-rata basis.

Answer & explanation

Correct answer: option 3

The correct answer is Option (3) → 13 : 10

Note: The given answer is as per the official NTA Answer Key. For this question, Option (4) could also be a possible answer, as explained below.

Applications for 72,000 shares came in. Applications for 7,000 shares were rejected and the pro-rata allotment of 50,000 shares was made to the applicants for 65,000 shares.

Shares applied for : Shares allotted
= 65,000 : 50,000
= 13 : 10

So an applicant for 13 shares received 10 shares. Rahul applied for 2,600 shares and was allotted 2,600 × 10/13 = 2,000 shares.

Option (1) 50 : 72 — Incorrect. It uses all 72,000 applications, but the rejected 7,000 got no shares at all.
Option (2) 72 : 50 — Incorrect. The same mistake, written the other way round.
Option (4) 10 : 13 — Should also be correct, though not the answer given by NTA. It is the same proportion stated as shares allotted to shares applied; the NCERT book states pro-rata ratios this way (for example, 20,000 shares allotted to applicants for 25,000 shares is called allotment “in the ratio of 4:5”).

NCERT (2026-27 edition):
Third Alternative – “When the application for some shares are rejected outrightly; and pro-rata allotment is made to the remaining applicants, the money on rejected applications is refunded and the excess application money received from applicants to whom pro-rata allotment has been made is adjusted towards the amount due on the allotment of shares allotted.”

NCERT (2026-27 edition):
Second Alternative – “… For example, in the event of applications for 20,000 shares being invited and those received are for 25,000 shares, it is decieded to allot shares in the ratio of 4:5 to all applicants. It is a case of pro-rata allotment and the excess application money received on 5,000 shares would be adjusted towards the amount due on the allotment of 20,000 shares.”

Eicher Ltd. issued 50,000 shares of ₹10 each at a premium of ₹5 per share payable as follows:

On application	₹3 per share
On allotment	₹5 (including ₹3 Premium)
On First Call	₹5 (including ₹2 Premium)
On Final Call	Balance amount

On the basis of following case study, answer the question.

Identify the ratio in which shares are issued on Pro-rata basis.

Answer & explanation

Correct answer: option 3

The correct answer is Option (3) → 13 : 10

Note: The given answer is as per the official NTA Answer Key. For this question, Option (4) could also be a possible answer, as explained below.

Applications for 72,000 shares came in. Applications for 7,000 shares were rejected and the pro-rata allotment of 50,000 shares was made to the applicants for 65,000 shares.

Shares applied for : Shares allotted
= 65,000 : 50,000
= 13 : 10

So an applicant for 13 shares received 10 shares. Rahul applied for 2,600 shares and was allotted 2,600 × 10/13 = 2,000 shares.

Option (1) 50 : 72 — Incorrect. It uses all 72,000 applications, but the rejected 7,000 got no shares at all.
Option (2) 72 : 50 — Incorrect. The same mistake, written the other way round.
Option (4) 10 : 13 — Should also be correct, though not the answer given by NTA. It is the same proportion stated as shares allotted to shares applied; the NCERT book states pro-rata ratios this way (for example, 20,000 shares allotted to applicants for 25,000 shares is called allotment “in the ratio of 4:5”).