Question : Gupta Ltd. had allotted 20,000 shares to the applicants of 40,000 shares on a pro-rata basis. Mr. Naman allotted 1,400 shares. Calculate the number of shares applied by Mr. Naman
Option 1: 3,000 shares
Option 2: 2,800 shares
Option 3: 2,500 shares
Option 4: 3,200 shares
Correct Answer: 2,800 shares
Solution :
Allotted 20,000 shares to the applicants = 40,000.
Shares allotted to Mr. Naman = 1,400.
Applied shares =
40,000
x 1400 = 2800 shares.
20,000
Hence, the right answer is an option 2.