Target Exam

CUET

Subject

-- Accountancy Part A

Chapter

Accounting for Shares

Question:

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.

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

Options:

13,000

3,000

10,000

4,000

Correct Answer:

10,000

Explanation:

The correct answer is option 3- 10,000

Application received = 13,000
Application rejected = 3,000
Remaining applications = 13,000 - 3,000
                                    = 10,000
On 10,000 shares pro-rata is made.