What will be the number of shares to be issued to a subscriber who applied for 50,000 units.

  • A 20,000
  • B 18,000
  • C 15,000
  • D 12,000
jamb 2015accounting

The correct answer is A. 20,000

Allotment = 500,000 = 0.4 or 40%

∴ Each subscriber would get 40% shares of what they applied for.

∴ 50,000 x 0.4 = 20,000 units

Previous question Next question