Z Ltd. invited application for issue of 10,000, 9% Debentures of ₹100 each. Application were received for 14,000 Debentures. Company alloted debentures to all the applicants on pro-rata basis. Calculate the number of 9% Debentures that would be issued to Mr Ravi who had applied for 700 debentures.
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) - 500 Debentures.
Application issued = 10,000
Application received = 14,000
Ravi applied for 700 debentures
Those applied for 14,000 allotted = 10,000
Ravi allotted debentures = 10,000/14,000 x 700
= 500