A company allotted 10,000 shares to applicants of 14,000 shares on a pro-rata basis. The application was for ₹2 per share. A shareholder applied for 420 shares. How much amount will be adjusted against allotment and calls money?
Answer & explanation
Correct answer: option 1
The correct answer is option 1- ₹240.
Shareholders who applied for 14,000 shares got 10,000 shares
Shareholders who applied for 420 shares got = 10,000/14,000 X 420
= 300 shares
Amount received on application = 420 X 2
= ₹840
Amount should be received on application on allotted shares = 300 X 2
= ₹600
Excess amount adjusted against allotment and call = 840 - 600
= ₹240