Eastern Company Limited issued 50,000 equity shares of ₹10 each at a premium of Rs. 3 per share payable as follows: On Application Rs. 3 per share, On Allotment (including premium) Rs. 5 per share, On first call (due three months after allotment) Rs. 3 per share and the balance as and when required. Applications were received for 60,000 shares and the directors allotted the shares as follows: (a) Applicants for 40,000 shares received in full. (b) Applicants for 15,000 shares received an allotment of 8,000 shares. (c) Applicants for 5000 shares received an allotment of 2000 shares, excess money received on application is adjusted towards money due on allotment. Hari, a shareholder who is allotted 40 shares belong to (b) category failed to pay allotment money and amount from other shareholders was duly received. Calculate the number of shares applied by Hari.
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → 75
In a pro-rata allotment, every applicant in a category gets shares in the same proportion. In category (b), applicants for 15,000 shares received 8,000 shares, so shares applied and shares allotted stand in the ratio 15 : 8 for each applicant in that group.
Ratio of shares applied to shares allotted in (b) = 15,000 : 8,000 = 15 : 8
Hari was allotted 40 shares
Shares applied by Hari = 40 × 15/8 = 75
Hari's failure to pay allotment money does not change the number of shares he applied for; it matters only for working out his unpaid amount.
Note: NTA picked this question from an NCERT (2026-27) exercise and changed the figures. Do not ignore NCERT while practising numericals.
NCERT (2026-27 edition):
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