A company had allotted 10,000 shares to the applicants of 14,000 shares on a pro-rata basis. The amount payable on the application was ₹2. F applied for 420 shares. How much amount will be carried forward for the adjustment against allotment money due from F?
Answer & explanation
Correct answer: option 3
The correct answer is option 3- ₹240.
Pro-rata made on 14,000 shares to whom 10,000 shares were allotted means who applied for 14 share get 10 share.
F applied for 420 shares.
Allotted shares to F = 10/14 X 420
= 300 shares.
Amount received from F = 420 X 2
= ₹840
Amount adjusted on application = 300 X 2
= ₹600
Excess amount = 840-600
= ₹240
This excess amount is adjusted towards allotment.