answersLogoWhite

0


Best Answer

Pro - rata allotment of shares is opted by the Company when there is an over-subscription. The excess application money is adjusted towards the sum due on allotment.

We calculate the amount of Pro - rata in the following way:

Suppose X Ltd invited applications for 1,00,000 shares and received applications for 1,50,000 shares. In this case the pro - rata is calculated as 1,50,000/1,00,000 = 3:2. Hence the Pro - rata is 3:2.

User Avatar

Wiki User

10y ago
This answer is:
User Avatar

Add your answer:

Earn +20 pts
Q: Allotment of shares on pro rata basis?
Write your answer...
Submit
Still have questions?
magnify glass
imp
Related questions

What is Pro-rata allotment of shares?

JGHFHF


What is pro rata allotment of shares?

JGHFHF


What is Share Allotment?

The process of allocating shares between shareholders usually pro rata or according to some prior agreement. The allotment may have conditions, which must be satisfied before the shares are issued, eg payment for them. This precedes the actual issue of shares.


What does pro rata basis mean?

It means in direct proportion.


What does pro-rata basis mean?

The daily cost without any extra penalties.


What is prorata basis?

In means 'in proportion'. For example, if money is given out pro rata, every one gets an equal share


What is the treatment of proposed dividend?

A dividend is a stockhder's share of the profits from the company. This is paid pro-rata to the stockholders in either cash or more shares.


What is Non Pro Rata Distribution?

To cause any share to be composed of property different in kind from any other share and to make pro rata and non pro rata distributions


Sample questions pro-rata?

can you please explain to me what pro-rata means regarding my holiday entitlement


What is the purpose of a pro rata salary?

A pro rata salary means you are earning a percentage of that yearly salary. For example if your pro rata salary was $16k and you worked 50% of full time hours you would earn $8k.


What is the transfer of all or a portion of a subsidiary's stock or other assets to the stockholders of its parent company on a pro rata basis called?

stock split


What does prorata basis means in assets depreciation?

Pro-rata depreciation is used when an asset is purchased in the middle of an accouting period therefore the straight line method and reducing balnce methods can not be used. The pro rata method lets you define howw long the asswet has been in ownership by the business for.