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.

On how many shares pro-rata is made by the company?

Options:

13000

3000

10000

4000

Correct Answer:

10000

Explanation:

The correct answer is option 3- 10000

Application received = 13000
Application rejected = 3000
Remaining applications = 13000 - 3000
                                  = 10000
On 10000 shares pro-rata is made.