A Ltd has allotted 10,000 shares to the applicants of 14,000 shares on pro-rata basis, The amount payable an application is Rs. 2. Mr. X applied for 420 shares. The number of shares allotted and the amount carried forward for adjustment against allotment money due from X is

The correct answer is: C. 340 shares, Rs. 160

Explanation:

The number of shares allotted to Mr. X is 10000/14000*420 = 340 shares.

The amount payable by Mr. X for 340 shares is 340*2 = Rs. 680.

The amount carried forward for adjustment against allotment money due from Mr. X is Rs. 680 – Rs. 200 = Rs. 480.

Here is a brief explanation of each option:

• Option A: 60 shares, Rs. 120

This option is incorrect because the number of shares allotted to Mr. X is 340 shares, not 60 shares.

• Option B: 320 shares, Rs. 200

This option is incorrect because the amount payable by Mr. X for 340 shares is Rs. 680, not Rs. 200.

• Option C: 340 shares, Rs. 160

This option is correct because the number of shares allotted to Mr. X is 340 shares and the amount payable by Mr. X for 340 shares is Rs. 680.

• Option D: 300 shares, Rs. 240

This option is incorrect because the number of shares allotted to Mr. X is 340 shares, not 300 shares.