PRUDENTIAL ALLOCATION FUND
NSAR-B, 1996-09-27
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<PAGE>      PAGE  1
000 A000000 01/31/96
000 C000000 0000811444
000 D000000 N
000 E000000 NF
000 F000000 Y
000 G000000 N
000 H000000 N
000 I000000 3.0.a
000 J000000 A
001 A000000 PRUDENTIAL ALLOCATION FUND
001 B000000 811-5055
001 C000000 2122141250
002 A000000 199 WATER STREET
002 B000000 NEW YORK
002 C000000 NY
002 D010000 10292
003  000000 N
004  000000 N
005  000000 N
006  000000 N
007 A000000 Y
007 B000000  2
007 C010100  1
007 C020100 BALANCED PORTFOLIO
007 C030100 N
007 C010200  2
007 C020200 STRATEGY PORTFOLIO
007 C030200 N
007 C010300  3
007 C010400  4
007 C010500  5
007 C010600  6
007 C010700  7
007 C010800  8
007 C010900  9
007 C011000 10
008 A00AA01 PRUDENTIAL MUTUAL FUND MANAGEMENT, INC.
008 B00AA01 A
008 C00AA01 801-31104
008 D01AA01 NEW YORK
008 D02AA01 NY
008 D03AA01 10292
008 A00AA02 PRUDENTIAL INVESTMENT CORPORATION
008 B00AA02 S
008 C00AA02 801-22808
008 D01AA02 NEWARK
008 D02AA02 NJ
008 D03AA02 07102
010 A00AA01 PRUDENTIAL MUTUAL FUND MANAGEMENT, INC.
010 B00AA01 811-31104
010 C01AA01 NEW YORK
<PAGE>      PAGE  2
010 C02AA01 NY
010 C03AA01 10292
011 A00AA01 PRUDENTIAL MUTUAL FUND DISTRIBUTORS, INC.
011 B00AA01 8-38739
011 C01AA01 NEW YORK
011 C02AA01 NY
011 C03AA01 10292
011 A00AA02 PRUDENTIAL SECURITIES INCORPORATED
011 B00AA02 8-27154
011 C01AA02 NEW YORK
011 C02AA02 NY
011 C03AA02 10292
012 A00AA01 PRUDENTIAL MUTUAL FUND SERVICES, INC.
012 B00AA01 85-4110019
012 C01AA01 NEW BRUNSWICK
012 C02AA01 NJ
012 C03AA01 08906
013 A00AA01 DELOITTE & TOUCHE, LLP
013 B01AA01 NEW YORK
013 B02AA01 NY
013 B03AA01 10281
014 A00AA01 PRUDENTIAL SECURITIES INCORPORATED
014 B00AA01 8-8-27154
014 A00AA02 PRUCO SECURITIES CORP.
014 B00AA02 8-16402
015 A00AA01 STATE STREET BANK AND TRUST CO.
015 B00AA01 C
015 C01AA01 BOSTON
015 C02AA01 MA
015 C03AA01 02171
015 E01AA01 X
015 A00AA02 CANADA TRUSTCO MORTGAGE COMPANY
015 B00AA02 S
015 C01AA02 TORONTO
015 D01AA02 CANADA
015 E04AA02 X
015 A00AA03 BANQUE PARIBAS
015 B00AA03 S
015 C01AA03 PARIS
015 D01AA03 FRANCE
015 E04AA03 X
015 A00AA04 STATE STREET BANK AND TRUST CO.
015 B00AA04 S
015 C01AA04 LONDON
015 D01AA04 UNITED KINGDOM
015 E04AA04 X
015 A00AA05 WESTPAC BANKING CORP.
015 B00AA05 S
015 C01AA05 SYDNEY
015 D01AA05 AUSTRALIA
015 E04AA05 X
<PAGE>      PAGE  3
015 A00AA06 GIROCREDIT BANK AKTIENGESELLSCHAFT DER SPARKA
015 B00AA06 S
015 C01AA06 VIENNA
015 D01AA06 AUSTRIA
015 E04AA06 X
015 A00AA07 GENERALE BANK
015 B00AA07 S
015 C01AA07 BRUSSELS
015 D01AA07 BELGIUM
015 E04AA07 X
015 A00AA08 DEN DANSKE BANK
015 B00AA08 S
015 C01AA08 COPENHAGEN
015 D01AA08 DENMARK
015 E04AA08 X
015 A00AA09 MERITA BANK LIMITED
015 B00AA09 S
015 C01AA09 HELSINKI
015 D01AA09 FINLAND
015 E04AA09 X
015 A00AA10 BERLINER HANDELS-UND FRANKFURTER BANK
015 B00AA10 S
015 C01AA10 FRANKFURT
015 D01AA10 GERMANY
015 E04AA10 X
015 A00AA11 THE HONGKONG AND SHANGHAI BANKING CORP. LTD.
015 B00AA11 S
015 C01AA11 HONG KONG
015 D01AA11 CHINA
015 E04AA11 X
015 A00AA12 BANK OF IRELAND
015 B00AA12 S
015 C01AA12 DUBLIN
015 D01AA12 IRELAND
015 E04AA12 X
015 A00AA13 MORGAN GUARANTY TRUST CO.
015 B00AA13 S
015 C01AA13 MILAN
015 D01AA13 ITALY
015 E04AA13 X
015 A00AA14 SUMITOMO TRUST & BANKING CO., LTD.
015 B00AA14 S
015 C01AA14 TOKYO
015 D01AA14 JAPAN
015 E04AA14 X
015 A00AA15 SEOULBANK
015 B00AA15 S
015 C01AA15 SEOUL
015 D01AA15 KOREA
015 E04AA15 X
015 A00AA16 STANDARD CHARTED BANK
<PAGE>      PAGE  4
015 B00AA16 S
015 C01AA16 HONG KONG
015 D01AA16 HONG KONG
015 E04AA16 X
015 A00AA17 STANDARD CHARTERED BANK
015 B00AA17 S
015 C01AA17 MALAYSIA
015 D01AA17 MALAYSIA
015 E04AA17 X
015 A00AA18 CITIBANK MEXICO, N.A.
015 B00AA18 S
015 C01AA18 MEXICO CITY
015 D01AA18 MEXICO
015 E04AA18 X
015 A00AA19 MEESPIERSON N.V.
015 B00AA19 S
015 C01AA19 AMSTERDAM
015 D01AA19 NETHERLANDS
015 E04AA19 X
015 A00AA20 ANZ BANKING GROUP (NEW ZEALAND) LIMITED
015 B00AA20 S
015 C01AA20 WELLINGTON
015 D01AA20 NEW ZEALAND
015 E04AA20 X
015 A00AA21 CHRISTIANIA BANK OG KREDITKASSE
015 B00AA21 S
015 C01AA21 OLSO
015 D01AA21 NORWAY
015 E04AA21 X
015 A00AA22 BANCO COMERCIAL PORTUGUES
015 B00AA22 S
015 C01AA22 LISBON
015 D01AA22 PORTUGAL
015 E04AA22 X
015 A00AA23 THE DEVELOPMENT BANK OF SINGAPORE, LTD.
015 B00AA23 S
015 C01AA23 SINGAPORE
015 D01AA23 SINGAPORE
015 E04AA23 X
015 A00AA24 BANCO SANTANDER, S.A.
015 B00AA24 S
015 C01AA24 MADRID
015 D01AA24 SPAIN
015 E04AA24 X
015 A00AA25 SKANDINAVISKA ENSKILDA BANKEN
015 B00AA25 S
015 C01AA25 STOCKOLM
015 D01AA25 SWEDEN
015 E04AA25 X
015 A00AA26 UNION BANK OF SWITZERLAND
015 B00AA26 S
<PAGE>      PAGE  5
015 C01AA26 ZURICH
015 D01AA26 SWITZERLAND
015 E04AA26 X
015 A00AA27 STANDARD CHARTERED BANK
015 B00AA27 S
015 C01AA27 THAILAND
015 D01AA27 THAILAND
015 E04AA27 X
015 A00AA28 CITIBANK, N.A.
015 B00AA28 S
015 C01AA28 BUENOS AIRES
015 D01AA28 ARGENTINA
015 E04AA28 X
015 A00AA29 CITIBANK. N.A.
015 B00AA29 S
015 C01AA29 SAO PAULO
015 D01AA29 BRAZIL
015 E04AA29 X
015 A00AA30 CITIBANK, N.A.
015 B00AA30 S
015 C01AA30 SANTIAGO
015 D01AA30 CHILE
015 E04AA30 X
015 A00AA31 CITITRUST COLUMBIA S.A SOCIEDAD FIDUCIARIA
015 B00AA31 S
015 C01AA31 BOGOTA
015 D01AA31 COLUMBIA
015 E04AA31 X
015 A00AA32 CESKOCLOVENSKA ONCHODNI BANKA A.S.
015 B00AA32 S
015 C01AA32 PRAGUE
015 D01AA32 CZECH REPUBLIC
015 E04AA32 X
015 A00AA33 NATIONAL BANK OF GREECE S.A.
015 B00AA33 S
015 C01AA33 ATHENS
015 D01AA33 GREECE
015 E04AA33 X
015 A00AA34 CITIBANK BUDAPEST RT.
015 B00AA34 S
015 C01AA34 BUDAPEST
015 D01AA34 HUNGARY
015 E04AA34 X
015 A00AA35 DEUTCHE BANK A.G.
015 B00AA35 S
015 C01AA35 BOMBAY
015 D01AA35 INDIA
015 E04AA35 X
015 A00AA36 STANDARD CHARTERED BANK
015 B00AA36 S
015 C01AA36 JAKARTA
<PAGE>      PAGE  6
015 D01AA36 INDONESIA
015 E04AA36 X
015 A00AA37 BANK HAPOALIM B.M.
015 B00AA37 S
015 C01AA37 TEL AVIV
015 D01AA37 ISRAEL
015 E04AA37 X
015 A00AA38 THE DAIWA BANK, LIMITED
015 B00AA38 S
015 C01AA38 TOKYO
015 D01AA38 JAPAN
015 E04AA38 X
015 A00AA39 DEUTCHE BANK AG
015 B00AA39 S
015 C01AA39 KARACHI
015 D01AA39 PAKISTAN
015 E04AA39 X
015 A00AA40 CITIBANK, N.A.
015 B00AA40 S
015 C01AA40 LIMA
015 D01AA40 PERU
015 E04AA40 X
015 A00AA41 STANDARD CHARTERED BANK
015 B00AA41 S
015 C01AA41 MANILA
015 D01AA41 PHILIPPINES
015 E04AA41 X
015 A00AA42 CITIBANK POLAND, S.A.
015 B00AA42 S
015 C01AA42 WARSAW
015 D01AA42 POLAND
015 E04AA42 X
015 A00AA43 CEKOSLOVENSKA OBCHODNA BANKA A.S.
015 B00AA43 S
015 C01AA43 BRATISLAVA
015 D01AA43 SLOVAK REPUBLIC
015 E04AA43 X
015 A00AA44 STANDARD BANK OF SOUTH AFRICA LTD.
015 B00AA44 S
015 C01AA44 JOHANNESBURG
015 D01AA44 SOUTH AFRICA
015 E04AA44 X
015 A00AA45 CENTRAL TRUST OF CHINA
015 B00AA45 S
015 C01AA45 TAIPEI
015 D01AA45 TAIWAN
015 E04AA45 X
015 A00AA46 CITIBANK, N.A.
015 B00AA46 S
015 C01AA46 ISTANBUL
015 D01AA46 TURKEY
<PAGE>      PAGE  7
015 E04AA46 X
015 A00AA47 DELETE
015 A00AA48 CITIBANK, N.A.
015 B00AA48 S
015 C01AA48 CARACAS
015 D01AA48 VENEZUELA
015 E04AA48 X
015 A00AA49 CITIBANK, N.A.
015 B00AA49 S
015 C01AA49 MONTEVIDEO
015 D01AA49 URUGUAY
015 E04AA49 X
018  00AA00 Y
019 A00AA00 Y
019 B00AA00   67
019 C00AA00 PRUDENTIAL
020 A000001 BEAR, STEARNS & CO., INC.
020 B000001 13-2999429
020 C000001     81
020 A000002 SALOMON BROTHERS INC.
020 B000002 13-3082694
020 C000002     75
020 A000003 INSTINET CORP.
020 B000003 13-3443395
020 C000003     68
020 A000004 MERRILL LYNCH, PIERCE, FENNER & SMITH, INC.
020 B000004 13-5674085
020 C000004     50
020 A000005 SOUNDVIEW FINANCIAL GROUP, INC.
020 B000005 13-2998183
020 C000005     50
020 A000006 PAINEWEBBER INC.
020 B000006 13-2638166
020 C000006     38
020 A000007 PRUDENTIAL SECURITIES,INCORPORATED
020 B000007 22-2343366
020 C000007     65
020 A000008 WEEDEN & CO.L.P.
020 B000008 13-3364318
020 C000008     32
020 A000009 CS FIRST BOSTON CORP.
020 B000009 13-5659485
020 C000009     30
020 A000010 LEHMAN BROS., INC.
020 B000010 13-2518466
020 C000010     29
021  000000      853
022 A000001 GOLDMAN, SACHS & CO.
022 B000001 13-5108880
022 C000001   1834856
022 D000001     13311
<PAGE>      PAGE  8
022 A000002 BEAR, STEARNS & CO., INC.
022 B000002 13-3299429
022 C000002   1762289
022 D000002      7730
022 A000003 CS FIRST BOSTON CORP.
022 B000003 13-5659485
022 C000003   1641126
022 D000003     30798
022 A000004 SMITH BARNEY, INC.
022 B000004 13-1912900
022 C000004   1300973
022 D000004      6286
022 A000005 LEHMAN BROTHERS, INC.
022 B000005 13-2518466
022 C000005    645906
022 D000005     11208
022 A000006 BANKERS TRUST CO.
022 B000006 13-4941247
022 C000006    359332
022 D000006         0
022 A000007 MORGAN STANLEY & CO., INC.
022 B000007 13-2655998
022 C000007    241796
022 D000007     24915
022 A000008 MORGAN, J.P. SECURITIES, INC.
022 B000008 13-3224016
022 C000008    200458
022 D000008      1978
022 A000009 BARCLAYS DE ZOETE WEDD SECURITIES, INC.
022 B000009 13-3551367
022 C000009    136596
022 D000009         0
022 A000010 MERRILL LYNCH, PIERCE, FENNER & SMITH, INC.
022 B000010 13-5674085
022 C000010     55873
022 D000010     44697
023 C000000    8505738
023 D000000     186545
026 A000000 N
026 B000000 N
026 C000000 N
026 D000000 Y
026 E000000 N
026 F000000 N
026 G010000 N
026 G020000 N
026 H000000 N
027  000000 Y
037  00AA00 N
038  00AA00      0
039  00AA00 N
<PAGE>      PAGE  9
040  00AA00 Y
041  00AA00 Y
045  00AA00 Y
046  00AA00 N
047  00AA00 Y
048  00AA00  0.650
048 A01AA00        0
048 A02AA00 0.000
048 B01AA00        0
048 B02AA00 0.000
048 C01AA00        0
048 C02AA00 0.000
048 D01AA00        0
048 D02AA00 0.000
048 E01AA00        0
048 E02AA00 0.000
048 F01AA00        0
048 F02AA00 0.000
048 G01AA00        0
048 G02AA00 0.000
048 H01AA00        0
048 H02AA00 0.000
048 I01AA00        0
048 I02AA00 0.000
048 J01AA00        0
048 J02AA00 0.000
048 K01AA00        0
048 K02AA00 0.000
049  00AA00 N
050  00AA00 N
051  00AA00 N
052  00AA00 N
053 A00AA00 N
054 A00AA00 Y
054 B00AA00 Y
054 C00AA00 N
054 D00AA00 N
054 E00AA00 N
054 F00AA00 N
054 G00AA00 N
054 H00AA00 Y
054 I00AA00 N
054 J00AA00 Y
054 K00AA00 N
054 L00AA00 N
054 M00AA00 N
054 N00AA00 N
054 O00AA00 N
055 A00AA00 Y
055 B00AA00 N
056  00AA00 Y
<PAGE>      PAGE  10
057  00AA00 N
058 A00AA00 N
059  00AA00 Y
060 A00AA00 Y
060 B00AA00 Y
061  00AA00     1000
062 A00AA00 N
062 B00AA00   0.0
062 C00AA00   0.0
062 D00AA00   0.0
062 E00AA00   0.0
062 F00AA00   0.0
062 G00AA00   0.0
062 H00AA00   0.0
062 I00AA00   0.0
062 J00AA00   0.0
062 K00AA00   0.0
062 L00AA00   0.0
062 M00AA00   0.0
062 N00AA00   0.0
062 O00AA00   0.0
062 P00AA00   0.0
062 Q00AA00   0.0
062 R00AA00   0.0
063 A00AA00   0
063 B00AA00  0.0
066 A00AA00 N
067  00AA00 Y
068 A00AA00 N
068 B00AA00 N
069  00AA00 N
077 A000000 Y
077 B000000 N
077 C000000 N
077 D000000 N
077 E000000 N
077 F000000 N
077 G000000 N
077 H000000 N
077 I000000 N
077 J000000 N
077 K000000 N
077 L000000 N
077 M000000 Y
077 N000000 N
077 O000000 N
077 P000000 N
077 Q010000 Y
077 Q020000 N
077 Q030000 N
078  000000 N
<PAGE>      PAGE  11
086 A010000      0
086 A020000      0
086 B010000      0
086 B020000      0
086 C010000      0
086 C020000      0
086 D010000      0
086 D020000      0
086 E010000      0
086 E020000      0
086 F010000      0
086 F020000      0
024  000100 Y
025 A000101 BEAR, STEARNS & COMPANY, INC.
025 B000101 13-3299429
025 C000101 D
025 D000101    7629
025 A000102 CS FIRST BOSTON CORP.
025 B000102 13-5659485
025 C000102 D
025 D000102    1693
025 A000103 SMITH BARNEY SHEARSON, INC.
025 B000103 13-3371860
025 C000103 D
025 D000103    6304
025 A000104 GOLDMAN, SACHS & CO.
025 B000104 13-5108880
025 C000104 D
025 D000104    7629
025 D000105       0
025 D000106       0
025 D000107       0
025 D000108       0
028 A010100     16023
028 A020100         0
028 A030100         0
028 A040100     22781
028 B010100    213345
028 B020100      2008
028 B030100         0
028 B040100     20202
028 C010100     17718
028 C020100         0
028 C030100         0
028 C040100     25666
028 D010100     25623
028 D020100         0
028 D030100         0
028 D040100     29034
028 E010100      7200
028 E020100     29389
<PAGE>      PAGE  12
028 E030100         0
028 E040100     12313
028 F010100     11900
028 F020100         0
028 F030100         0
028 F040100     15935
028 G010100    291809
028 G020100     31397
028 G030100         0
028 G040100    125931
028 H000100     55324
029  000100 Y
030 A000100    106
030 B000100  5.00
030 C000100  0.50
031 A000100      4
031 B000100      0
032  000100      0
033  000100    102
034  000100 Y
035  000100    344
036 A000100 N
036 B000100      0
042 A000100   0
042 B000100   0
042 C000100   0
042 D000100 100
042 E000100   0
042 F000100   0
042 G000100   0
042 H000100   0
043  000100   2445
044  000100      0
070 A010100 Y
070 A020100 N
070 B010100 Y
070 B020100 N
070 C010100 N
070 C020100 N
070 D010100 Y
070 D020100 N
070 E010100 Y
070 E020100 N
070 F010100 Y
070 F020100 N
070 G010100 Y
070 G020100 N
070 H010100 Y
070 H020100 N
070 I010100 N
070 I020100 N
<PAGE>      PAGE  13
070 J010100 Y
070 J020100 Y
070 K010100 Y
070 K020100 N
070 L010100 Y
070 L020100 Y
070 M010100 Y
070 M020100 Y
070 N010100 Y
070 N020100 N
070 O010100 Y
070 O020100 N
070 P010100 Y
070 P020100 N
070 Q010100 N
070 Q020100 N
070 R010100 Y
070 R020100 N
071 A000100    500266
071 B000100    326037
071 C000100    620285
071 D000100   53
072 A000100  6
072 B000100     9252
072 C000100     3163
072 D000100        0
072 E000100        0
072 F000100     2130
072 G000100        0
072 H000100        0
072 I000100      680
072 J000100       79
072 K000100        0
072 L000100       76
072 M000100       12
072 N000100       55
072 O000100        0
072 P000100        0
072 Q000100        0
072 R000100        8
072 S000100       17
072 T000100     2445
072 U000100        0
072 V000100        0
072 W000100       15
072 X000100     5517
072 Y000100        0
072 Z000100     6898
072AA000100    43512
072BB000100    22425
072CC010100    17402
<PAGE>      PAGE  14
072CC020100        0
072DD010100     3239
072DD020100     2339
072EE000100    28807
073 A010100   0.1000
073 A020100   0.2400
073 B000100   0.4900
073 C000100   0.0000
074 A000100       61
074 B000100    23255
074 C000100      855
074 D000100   272290
074 E000100     2197
074 F000100   385819
074 G000100        0
074 H000100        0
074 I000100        0
074 J000100    63117
074 K000100        0
074 L000100     5925
074 M000100       16
074 N000100   753535
074 O000100    26921
074 P000100      816
074 Q000100        0
074 R010100        0
074 R020100        0
074 R030100        0
074 R040100     1914
074 S000100        0
074 T000100   723884
074 U010100    37606
074 U020100    23018
074 V010100    11.92
074 V020100    11.97
074 W000100   0.0000
074 X000100   100198
074 Y000100        0
075 A000100        0
075 B000100   651949
076  000100     0.00
080 A000100 ICI MUTUAL INSURANCE CO.
080 C000100    65000
081 A000100 Y
081 B000100  85
082 A000100 N
082 B000100        0
083 A000100 N
083 B000100        0
084 A000100 N
084 B000100        0
<PAGE>      PAGE  15
085 A000100 Y
085 B000100 N
024  000200 Y
025 A000201 BEAR STEARNS & COMPANY, INC.
025 B000201 13-3299429
025 C000201 D
025 D000201    3103
025 A000202 CS FIRST BOSTON CORP.
025 B000202 13-5659485
025 C000202 D
025 D000202   13980
025 A000203 GOLDMAN SACHS & CO.
025 B000203 13-5108880
025 C000203 D
025 D000203   13980
025 A000204 SMITH BARNEY, INC.
025 B000204 13-1912900
025 C000204 D
025 D000204   11553
025 D000205       0
025 D000206       0
025 D000207       0
025 D000208       0
028 A010200      2679
028 A020200         0
028 A030200         0
028 A040200      7658
028 B010200      3162
028 B020200      1408
028 B030200         0
028 B040200      6708
028 C010200      3384
028 C020200         0
028 C030200         0
028 C040200      6598
028 D010200      3988
028 D020200         0
028 D030200         0
028 D040200      6580
028 E010200      3708
028 E020200     23340
028 E030200         0
028 E040200      6323
028 F010200      4235
028 F020200         0
028 F030200         0
028 F040200      7537
028 G010200     21156
028 G020200     24748
028 G030200         0
028 G040200     41404
<PAGE>      PAGE  16
028 H000200      9070
029  000200 Y
030 A000200     59
030 B000200  5.00
030 C000200  0.00
031 A000200      2
031 B000200      0
032  000200      0
033  000200     57
034  000200 Y
035  000200    187
036 A000200 N
036 B000200      0
042 A000200   0
042 B000200   0
042 C000200   0
042 D000200 100
042 E000200   0
042 F000200   0
042 G000200   0
042 H000200   0
043  000200   1493
044  000200      0
070 A010200 Y
070 A020200 Y
070 B010200 Y
070 B020200 Y
070 C010200 N
070 C020200 N
070 D010200 Y
070 D020200 N
070 E010200 Y
070 E020200 N
070 F010200 Y
070 F020200 Y
070 G010200 Y
070 G020200 N
070 H010200 Y
070 H020200 N
070 I010200 N
070 I020200 N
070 J010200 Y
070 J020200 N
070 K010200 Y
070 K020200 N
070 L010200 Y
070 L020200 Y
070 M010200 Y
070 M020200 Y
070 N010200 Y
070 N020200 N
<PAGE>      PAGE  17
070 O010200 Y
070 O020200 N
070 P010200 Y
070 P020200 Y
070 Q010200 N
070 Q020200 N
070 R010200 Y
070 R020200 N
071 A000200    145702
071 B000200    169268
071 C000200    338201
071 D000200   43
072 A000200  6
072 B000200     5372
072 C000200     1294
072 D000200        0
072 E000200        0
072 F000200     1200
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074 K000200        0
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074 V020200    12.46
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074 X000200    62985
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075 A000200        0
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076  000200     0.00
080 A000200 ICI MUTUAL INSURANCE CO.
080 C000200    65000
081 A000200 Y
081 B000200  85
082 A000200 N
082 B000200        0
083 A000200 N
083 B000200        0
084 A000200 N
084 B000200        0
085 A000200 Y
085 B000200 N
SIGNATURE   GRACE TORRES                                 
TITLE       TREASURER           
 

WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.

<TABLE> <S> <C>






    <ARTICLE> 6
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    <NAME> PRUDENTIAL ALLOCATION FUND
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WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.

<TABLE> <S> <C>






    <ARTICLE> 6
    <CIK> 0000811444
    <NAME> PRUDENTIAL ALLOCATION FUND
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       <NUMBER> 002
       <NAME> BALANCED PORTFOLIO - CLASS B
           
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WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.

<TABLE> <S> <C>






    <ARTICLE> 6
    <CIK> 0000811444
    <NAME> PRUDENTIAL ALLOCATION FUND
    <SERIES>
       <NUMBER> 003
       <NAME> BALANCED PORTFOLIO - CLASS C
           
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    <NAME> PRUDENTIAL ALLOCATION FUND
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       <NUMBER> 004
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    <NAME> PRUDENTIAL ALLOCATION FUND
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       <NUMBER> 001
       <NAME> STRATEGY PORTFOLIO - CLASS A
           
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<TABLE> <S> <C>






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    <NAME> PRUDENTIAL ALLOCATION FUND
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       <NAME> STRATEGY PORTFOLIO - CLASS B
           
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</TABLE>

<TABLE> <S> <C>






    <ARTICLE> 6
    <CIK> 0000811444
    <NAME> PRUDENTIAL ALLOCATION FUND
    <SERIES>
       <NUMBER> 003
       <NAME> STRATEGY PORTFOLIO - CLASS C
           
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    <SHARES-COMMON-PRIOR>                       29,461,767
    <ACCUMULATED-NII-CURRENT>                    1,072,074
    <OVERDISTRIBUTION-NII>                               0
    <ACCUMULATED-NET-GAINS>                     29,178,735
    <OVERDISTRIBUTION-GAINS>                             0
    <ACCUM-APPREC-OR-DEPREC>                     8,621,815
    <NET-ASSETS>                               333,979,993
    <DIVIDEND-INCOME>                            2,370,904
    <INTEREST-INCOME>                            9,729,582
    <OTHER-INCOME>                                       0
    <EXPENSES-NET>                               6,592,615
    <NET-INVESTMENT-INCOME>                      5,507,871
    <REALIZED-GAINS-CURRENT>                    36,314,860
    <APPREC-INCREASE-CURRENT>                  (25,351,282)
    <NET-CHANGE-FROM-OPS>                       16,471,449
    <EQUALIZATION>                                 (91,163)
    <DISTRIBUTIONS-OF-INCOME>                   (5,409,566)
    <DISTRIBUTIONS-OF-GAINS>                   (22,836,004)
    <DISTRIBUTIONS-OTHER>                                0
    <NUMBER-OF-SHARES-SOLD>                     55,447,312
    <NUMBER-OF-SHARES-REDEEMED>               (102,839,745)
    <SHARES-REINVESTED>                         27,153,769
    <NET-CHANGE-IN-ASSETS>                     (32,103,948)
    <ACCUMULATED-NII-PRIOR>                      1,539,281
    <ACCUMULATED-GAINS-PRIOR>                   15,225,530
    <OVERDISTRIB-NII-PRIOR>                              0
    <OVERDIST-NET-GAINS-PRIOR>                           0
    <GROSS-ADVISORY-FEES>                        2,362,457
    <INTEREST-EXPENSE>                                   0
    <GROSS-EXPENSE>                              6,592,615
    <AVERAGE-NET-ASSETS>                           467,000
    <PER-SHARE-NAV-BEGIN>                            12.41










    <PER-SHARE-NII>                                   0.17
    <PER-SHARE-GAIN-APPREC>                           0.35
    <PER-SHARE-DIVIDEND>                             (0.16)
    <PER-SHARE-DISTRIBUTIONS>                        (0.81)
    <RETURNS-OF-CAPITAL>                              0.00
    <PER-SHARE-NAV-END>                              11.96
    <EXPENSE-RATIO>                                   2.02
    <AVG-DEBT-OUTSTANDING>                               0
    <AVG-DEBT-PER-SHARE>                              0.00
            


</TABLE>

For the fiscal period ended (a) 7/31/96 File number (c) 811-5055

                          SUB-ITEM 77 0 EXHIBITS

           Transactions Effected Pursuant to Rule 10f-3 1.  Name of Issuer
       Sterling Commerce

2.   Date of Purchase
       03/08/96

3.   Number of Securities Purchased
       20,500

4.   Dollar Amount of Purchase
       $492,000

5.   Price Per Unit
       $24

6.   Name(s) of Underwriter(s) or Dealer(s)
     From whom Purchased
       Alex Brown

7.   Other Members of the Underwriting Syndicate
       Alex, Brown & Sons Incorporated
       CS First Boston Corporation
       Donaldson, Lufkin & Jenrette Securities Corporation Merrill Lynch, 
       Pierce, Fenner,& Smith Incorporated
       Goldman Sachs & Co.
       Morgan Stanley & Co.Inc
       Bear Stearns& Co. Inc.
       Lehman Brothers Inc.
       Prudential Securities Incorporated Salomon Brothers Inc.
       Smith Barney Inc.
       Dean Witter Reynolds Inc.
       The Chicago Corporation Oppenheimer & Co., Inc. PaineWebber Incorporated
       Cowen & Company
       Needham & Company, Inc.
       The Ohio Company
       Hambrecht & Quist LLC
       Lazard Freres & Co. LLC
Robertson, Stephens & Company, L.P. Schroeder Wertheim & Co. Inc. First
Southwest Company
       Dillion Reed & Co. Inc.
       A.G.  Edwards & Sons, Inc. Montgomery Securities
       Principal Financial Securities, Inc. Punk, Ziegel & Knoell
                         Soundview Financial Group, Inc.
       Utterburg Harris
       Volpe, welty & Co.
                           Wessels, Arnold & Henderson
       Friedman, Billings, Ramsey & Co., Inc. Hoak Securities Corp.
       Kaufman Bros., LP
       C.L. King & Associates
       Southwest Securities Inc.
       Van Kasper & Company
William K. Woodruff & Company Inc.




For the fiscal period ended (a) 7/31/96 File number (c) 811-5055
                          SUB-ITEM 77 I
Terms of New or Amended Securities

     On May 8, 1996, the Board of Directors authorized the issuance of a fourth
class of shares designated Class Z for the Strategy Portfolio.  Class Z shares
are not subject to either an initial or contingent deferred sales charge nor are
they subject to any Rule 12b-1 fees. Class Z shares will be offered to a limited
group of eligible investors as soon as practicable.


For the fiscal period ended (a) 7/31/96 File number (c) 811-5055

                          SUB-ITEM 77 0 EXHIBITS

           Transactions Effected Pursuant to Rule 10f-3 1.  Name of Issuer
       Donaldson, Lufkin & Jenrette

2.   Date of Purchase
       10/25/95

3.   Number of Securities Purchased
       23,400

4.   Dollar Amount of Purchase
       $631,800

5.   Price Per Unit
       $27

6.   Name(s) of Underwriter(s) or Dealer(s)
     From whom Purchased
      Donaldson, Lufkin & Jenrette

7.   Other Members of the Underwriting Syndicate
       CS First Boston Corporation
       Donaldson, Lufkin & Jenrette Securities Corporation         
       Merrill Lynch, Pierce, Fenner,& Smith Incorporated Ragen
       MacKenzie Incorporated
       Goldman Sachs & Co.
       Morgan Stanley & Co.Inc
       Bear Stearns& Co. Inc.
       Lehman Brothers Inc.
       Prudential Securities Incorporated Salomon Brothers Inc.
       Smith Barney Inc.
                            Dean Witter Reynolds Inc.
       Robert W. Baird & Co. Incorporated Sanford C. Bernstein & Co., Inc. J.C.
       Bradford & Co.
       Alex, Brown & Sons Incorporated The Chicago Dearborn Company
Cleary Gull Reiland & McDevitt Inc. Conning & Company
       Fox-Pitt, Kelton Inc.
       Johnson, Lemon & Co. Incorporated Montgomery Securities
       Neuberger & Berman

       Oppenheimer & Co., Inc. PaineWebber Incorporated Advest, Inc.
       Cowen & Company
       Crowell, Weedon & Co.
       A.G. Edwards & Sons, Inc. Equitable Securities Corporation Fahnestock &
       Co. Inc.
       First of Michigan Corporation J.J.B. Hilliard, W.L. Lyons, Inc.
       Ladenburg, Thalmann & Co. Inc. Morgan Keegan & Company, Inc.
Legg Mason Wood Walker Incorporated McDonald & Company Securities, Inc.
Needham & Company, Inc.
The Ohio Company
Pennsylvania Merchant Group Ltd. Piper Jaffray Inc.
Principal Financial Securities, Inc. Rauscher Pierce Refsnes, Inc. Raymond James
& Associates, Inc. The Robinson-Humphrey Company, Inc. Roney & Co.
Scott & Stringfellow, Inc. Stephens Inc.
Sutro & Co. Incorporated
Tucker Anthony Incorporated Unterberg Harris
Chase Securities, Inc.
Chemical Securities Inc.
Credit Lyonnais Securities (USA) Inc. Deutsche Morgan Grenfell/C.J. Lawrence
Inc. Dillion, Reed & Co. Inc.
Hambrecht & Quist LLC
Lazard Freres & Co. LLC
Robertson, Stephens & Company, L.P. Schroeder Wertheim & Co. Inc. Societe
Generale Securities Corp. UBS Securities Inc.
S.G. Warburg & Co. Inc.
Allen & Company Inc.
Arnhold and S. Bleichroeder, Inc. William Blair & Company
J.W. Charles Securities, Inc. First Albany Corporation
First Manhattan Co.
First Marathon Securities Limited First Southwest Company
Robert Fleminig Inc.
Furman Seiz Inc.
Gruntal & Co. Inc.
Howard, Weil, Labouisse, Friedrichs Inc. Nesbitt Burns Securities Inc.
Parker/Hunter Inc.
Richardson Greenshields Securities Inc. Ryan, Beck & Co.
ScotiaMcLeod (USA) Inc.
Toronto Dominion Securities (USA) Inc. Wedbush Morgan Seurities
Equitable Securities Corporation Interstate/Johnson Lane Corporation Janney
Montgomery Scott, Inc.





For the fiscal period ended (a) 7/31/96 File number (c) 811-5055

                         SUB-ITEM 77 M EXHIBITS Mergers

     On May 8, 1996, the Trustees approved and authorized a proposal to
reorganize Prudential Institutional Fund - Balanced Fund  (Balanced Fund)  into
Prudential Allocation Fund (Balanced Portfolio) (the Balanced Portfolio).  The
proposed transaction involves the transfer of the assets of Balanced Fund in
exchange for shares of the Balanced Portfolio and the assumption by the Balanced
Portfolio of certain liabilities, if any, of Balanced Fund.  On September 6,
1996 the Plan of Reorganization and Liquidation was approved by a majority of
the shareholders of  the Balanced Fund. The  transaction closed on September 20,
1996.


For the period ended (a) 07/31/96
File number (c) 811-5055


                                  SUB-ITEM 77 Q
                                        
                                 Exhibits
     On February 7, 1996, the Trustees approved and authorized a proposal to
increase the number of Directors, which shall constitute the Board to ten (10),
pursuant to Article II, Section 2.1 of the Fund's Declaration of Trust.


                                      - 2 -











Board of Directors or Trustees of:


Prudential Adjustable Rate       Prudential High Yield
Securities Fund*                 Fund
Prudential Allocation Fund (2    Prudential
Portfolios)                      IncomeVertible Fund*
The BlackRock Government Income  Prudential
Trust                            Intermediate Global
Global Utility Fund              Income Fund
Nicholas-Applegate Fund          Prudential Jennison
Prudential California Municipal  Fund
Fund (2 Portfolios)              Prudential MoneyMart
Prudential Distressed            Assets
Securities Fund                  Prudential Mortgage
Prudential Diversified Bond      Income Fund
Fund                             Prudential Multi-
Prudential Equity Fund           Sector Fund
Prudential Equity Income Fund    Prudential Municipal
Prudential Global Genesis Fund   Bond Fund (3
Prudential Global Limited        Portfolios)
Maturity Fund                    Prudential Municipal
Prudential Global Natural        Series Fund (10
Resources Fund                   current
The Global Government Plus Fund      Portfolios and 3
The Global Total                 merged Portfolios*)
Return Fund                      Prudential National
Prudential Government            Municipals Fund
Income Fund                      Prudential Pacific
Prudential Government            Growth Fund
 Securities Trust -              Prudential Small
 Money                           Companies Fund
 Market Series                   Prudential Structured
                                 Maturity Fund
                                 Prudential U.S.
                                 Government Fund*
                                 Prudential Utility
                                 Fund
                                 Prudential World Fund
                                 
*  As of June 30, 1996, the Fund/Portfolio was no longer in operation.
 The Fund/Portfolio merged into
 another Fund within the Prudential Mutual Fund Family.
 
We have examined the accompanying description of the Prudential
Multiple Class Pricing Worksheet (the "Worksheet") application of
State Street Bank and Trust Company ("State Street"), custodian and
recordkeeper for the Prudential Mutual Funds (the "Funds").  Our
examination included procedures to obtain reasonable assurance about
whether (1) the accompanying description presents fairly, in all
material respects, the aspects of State Street's policies and
procedures that may be relevant to a Fund's internal control structure
relating to the Worksheet, (2) the control structure policies and
procedures included in the description were suitably designed to
achieve the control objectives specified in the description, if those
policies and procedures were complied with satisfactorily, and (3)
such policies and procedures had been placed in operation as of
June 30, 1996.  The control objectives were specified by Prudential
Mutual Fund Management, Inc.  Our examination was performed in
accordance with standards established by the American Institute of
Certified Public Accountants and included those procedures we
considered necessary in the circumstances to obtain a reasonable basis
for rendering our opinion.

In our opinion, the accompanying description of the aforementioned
application presents fairly, in all material respects, the relevant
aspects of State Street's policies and procedures that had been placed
in operation as of June 30, 1996.  Also, in our opinion, the policies
and procedures, as described, are suitably designed to provide
reasonable assurance that the specified control objectives would be
achieved if the described policies and procedures were complied with
satisfactorily.

In addition to the procedures we considered necessary to render our
opinion as expressed in the previous paragraph, we applied tests to
specific policies and procedures, listed in Section I, to obtain
evidence about their effectiveness in meeting the control objectives,
described in Section I during the period from July 1, 1995 to June 30,
1996.  The nature, timing, extent, and results of the tests are listed
in Section II.  In our opinion the policies and procedures that were
tested, as described in Section II, were operating with sufficient
effectiveness to provide reasonable, but not absolute, assurance that
the control objectives specified in Section I were achieved during the
period from July 1, 1995 to June 30, 1996.  However, the scope of our
engagement did not include tests to determine whether control
objectives not listed  in Section I were achieved; accordingly we
express no opinion on the achievement of control objectives not
included in Section I.

The relative effectiveness and significance of specific policies and
procedures at State Street, and their effect on assessments of control
risk on the Funds are dependent on their interaction with the
policies, procedures, and other factors present at individual Funds.
We have performed no procedures to evaluate the effectiveness of
policies and procedures at individual Funds in connection with this
report.

The description of policies and procedures at State Street is as of
June 30, 1996, and information about tests of the operating
effectiveness of specified policies and procedures covers the period
from July 1, 1995 to June 30, 1996.  Any projection of such
information to the future is subject to the risk that, because of
change, the description may no longer portray the system in existence.
The potential effectiveness of specified policies and procedures at
State Street is subject to inherent limitations and, accordingly,
errors or irregularities may occur and not be detected.  Furthermore,
the projection of any conclusions, based on our findings, to future
periods is subject to the risk that changes may alter the validity of
such conclusions.

This report is intended solely for use by the management and Boards of
Directors/Trustees of the Funds, the independent auditors of the Funds
and the Securities and Exchange Commission.





August 23, 1996





                                    SECTION I

                   Policies and Procedures Placed in Operation
                   Prudential Multiple Class Pricing Worksheet
                                        
                                        
The Prudential Mutual Funds (the "Funds") have adopted a multiple
class pricing system.  The multiple class pricing system consists of
four classes of shares (Class A, Class B, Class C and Class Z).  Class
A shares are subject to an initial sales charge, Class B and Class C
shares are subject to a contingent deferred sales charge and Class Z
shares have no sales charge (Class Z shares which were first offered
on March 1, 1996, are offered exclusively for sale to the PSI Pension
Plan).  Each of the classes of shares represent interests in the same
portfolio of investments of the respective Fund and are identical in
all respects, except that each class is subject to different
distribution expenses and has exclusive voting rights with respect to
the Rule 12b-1 distribution plan pursuant to which such distribution
expenses are paid.

In order to allocate income and expenses among the classes of shares,
State Street Bank and Trust Company (the Funds' custodian and
recordkeeper) utilizes the Prudential Multiple Class Pricing Worksheet
(the "Worksheet") (see Exhibit I).  The Worksheet is a manual
supplementary application that extracts relevant data from the Funds'
primary accounting system, allocates income and expenses among the
classes of shares and computes the daily net asset value and, if
applicable, the dividend/distribution for each class of shares.
Internal accounting controls that are relevant to the Fund can be
divided into two components - controls related to the mutual fund
accounting system resident at State Street Bank and Trust Company (the
"primary accounting system") and controls related to the Worksheet.

The specific control objectives and policies and procedures relating
to the Worksheet are described on pages 4 and 5.  A description of the
tests of the policies and procedures designed to obtain evidence about
the operating effectiveness of those policies and procedures in
achieving the specific control objectives is included in Section II.

                 Control Objectives and Policies and Procedures
                   Prudential Multiple Class Pricing Worksheet


The Worksheet is a supplementary manual application to the Funds'
primary accounting system.  Certain data is extracted from the primary
accounting system to allocate income and expenses and to calculate the
daily net asset value and, if applicable, dividends/distributions for
each class of shares.  The primary accounting system includes the
details of transactions in accordance with the Investment Company Act
of 1940, as amended.

The following represents the internal accounting control objectives
and policies and procedures for the allocation of income and expenses
and the computation of the net asset value and, if applicable, the
dividend/distribution for each class of shares utilizing the
Worksheet.  It does not cover the internal accounting control policies
and procedures surrounding the processing of information into the
Funds' primary accounting system.

                                          CONTROL POLICIES
       CONTROL OBJECTIVES                  AND PROCEDURES
                                                  
A. Capital share activity as         1. Daily, the transfer
reported by the Fund's transfer      agent forwards
agent is recorded for each class     reports of capital
in an accurate and timely manner     share activity for
by the Fund.                         each class which
                                     includes a summary
                                     of subscriptions,
                                     redemptions,
                                     exchanges and other
                                     information (the
                                     "Supersheet").  The
                                     opening day's
                                     balance for shares
                                     outstanding and
                                     current day activity
                                     is recorded on the
                                     Worksheet.
                                     
                                  2. Estimated interim
                                     share activity for
                                     the current day not
                                     recorded in the
                                     Supersheet is
                                     received via telefax
                                     from the transfer
                                     agent and is
                                     recorded for each
                                     class on the
                                     Worksheet.
                                     
                                  3. A report of
                                     outstanding shares
                                     eligible for
                                     dividends is
                                     received from the
                                     transfer agent and
                                     is recorded for each
                                     class on the
                                     Worksheet.
                                     
B. Net Asset Value ("NAV") and, if   1. The prior days
applicable, the                      ending NAV per
dividend/distribution for each       share (b) for each
class are accurately computed on     class is agreed to
a daily basis.                       the prior day's
                                     Worksheet.
                                     
                                  2. The daily net
                                     capital stock
                                     activity for each
                                     class for the
                                     current day is
                                     agreed to the
                                     Supersheet as
                                     described in
                                     Control Procedures
                                     A.1., 2. and 3.,
                                     above.
                                     
                                     3. Percentage Assets
                                     by Class and
                                     Percentage Dividend
                                     Assets by Class are
                                     calculated for each
                                     class based upon
                                     information from
                                     the prior day
                                     Worksheet, the
                                     Supersheet and the
                                     telefax from the
                                     transfer agent.
                                     

                                          CONTROL POLICIES
       CONTROL OBJECTIVES                  AND PROCEDURES
                                                  
                                     4. Allocate investment
                                     income among
                                     classes based on
                                     the appropriate
                                     asset allocation
                                     percentage for each
                                     class.
                                     
                                     5. Agree composite
                                     income accounts,
                                     management fees,
                                     other expenses,
                                     realized gains and
                                     losses, and
                                     unrealized
                                     appreciation/deprec
                                     iation to the
                                     primary accounting
                                     system of the Fund.
                                     
                                  6. Allocate expenses
                                     among classes as
                                     follows:
                                     
                                        a. Expenses
                                         directly
                                         attributable to
                                         each class (12b-
                                         1 distribution
                                         expenses) are
                                         calculated and
                                         recorded to that
                                         class.
                                         
                                     b. Expenses
                                         attributable to
                                         both classes are
                                         allocated in
                                         accordance with
                                         the appropriate
                                         asset allocation
                                         percentage for
                                         each class.
                                         
                                     7. Allocate realized
                                     and unrealized
                                     gains and losses
                                     among the classes
                                     in accordance with
                                     the appropriate
                                     asset allocation
                                     percentage of each
                                     class.
                                     
                                  8. Record
                                     dividends/distribut
                                     ions to
                                     shareholders of
                                     each class in the
                                     primary accounting
                                     system.
                                     
                                  9. Aggregate the net
                                     assets for each
                                     class and agree to
                                     the total net
                                     assets per the
                                     primary accounting
                                     system.
                                     
                                  10.For each class,
                                     reconcile the
                                     current day's NAV
                                     and, if applicable,
                                     the
                                     dividend/distributi
                                     on to the previous
                                     day's NAV and
                                     dividend/
                                     distribution for
                                     each class.
                                     
                                  11.The above
                                     procedures are
                                     reviewed by the
                                     Fund supervisor or
                                     manager.
                                     

                                   SECTION II

                        Tests of Operating Effectiveness
                   Prudential Multiple Class Pricing Worksheet
                          July 1, 1995 to June 30, 1996
                                        
                                        
We reviewed the methodology and procedures for calculating the daily
net asset value and, if applicable, the dividends/distributions of the
classes of shares and the allocation of income and expenses among the
classes of shares.

The following are the detailed procedures which we performed with
respect to the Worksheet.  These procedures were performed for
selected days encompassing all Funds subject to multiple class pricing
during the year ended June 30, 1996, which we believe is a
representative sample, to test compliance with the control policies
and procedures as described in Section I.

Prudential Mutual Fund Management, Inc. is the manager of the Funds
and has represented to us that adequate facilities are in place to
ensure implementation of the methodology and procedures for
calculating the net asset value and dividends/distributions of the
classes of shares and the allocation of income and expenses among the
classes of shares.  Based on our review of the description of the
policies and procedures of the Worksheet, as described in Section I,
and performance of tests of operating effectiveness as described in
Section II, we concur with such representation.

   Agreed "Prior Day NAV Per Share" to the previous day's Worksheet.
   
   Agreed "Shares Outstanding Beginning of the Day" to the previous
   day's Worksheet and to the transfer agency records for each class.
   
   Recalculated "Activity/Estimate" by adding the estimated interim
   share activity reported via fax from the transfer agent and the
   current day's "Capital Stock Activity" reported on the Supersheet
   for each class.
   
   Recalculated "Current Shares Outstanding" by adding "Shares
   Outstanding Beginning of the Day" and "Activity/Estimate" for each
   class.
   
   Recalculated for each class "Adjusted Total Assets" by multiplying
   "Prior Day NAV Per Share" by "Current Shares Outstanding".
   
   Recalculated "Percentage Assets-Class A/Front End" by dividing
   "Adjusted Total Assets-Class A/Front End" by "Adjusted Total
   Assets Composite".
   
   Recalculated "Percentage Assets-Class B(C)/Back End" by dividing
   "Adjusted Total Assets-Class B(C)/Back End" by "Adjusted Total
   Assets Composite".
   
   Recalculated "Percentage Assets-Class Z/No Fee" where applicable,
   by dividing "Adjusted Total Assets-Class Z/No Fee" by "Adjusted
   Total Assets Composite".
   
   Agreed "Dividend Shares" to the transfer agency records for each
   class.
   
   Recalculated "Current Dividend Shares" by adding "Dividend Shares
   Beginning of Day" and "Activity/Estimate" for each class.
   
   Recalculated for each class "Adjusted Dividend Assets" by
   multiplying "Prior Day NAV Per Share" by "Current Dividend
   Shares".
   
   Recalculated "Percentage Dividend Assets-Class A/Front End" by
   dividing "Adjusted Dividend Assets-Class A/Front End" by "Adjusted
   Dividend Assets Composite".
   
   Recalculated "Percentage Dividend Assets-Class B(C)/Back End" by
   dividing "Adjusted Dividend Assets-Class B(C)/Back End" by
   "Adjusted Dividend Assets Composite".
   
   Recalculated "Percentage Dividend Assets-Class Z/No Fee" where
   applicable, by dividing "Adjusted Dividend Assets-Class Z" by
   "Adjusted Dividend Assets Composite".
   
   Agreed composite total of each component of income to the primary
   accounting system.
   
   Recalculated the allocation for each class of each component of
   income for daily dividend funds by multiplying the composite total
   by "Percentage Dividend Assets-Class A/Front End", "Percentage
   Dividend Assets-Class B(C)/Back End" and where applicable,
   "percentage Dividend Assets-Class Z/No Fee", and for non-daily
   dividend funds by multiplying the composite total by "Percentage
   Assets-Class A/Front End", "Percentage Assets-Class B(C)/Back End"
   and where applicable, "Percentage Assets-Class Z/No Fee".
   
   Recalculated "Daily Income," composite and for each class, by
   totaling each component of income.
   
   Agreed composite total "Management Fee" and "Other Fixed Expenses"
   to the primary accounting system.
   
   Recalculated the allocation for each class of "Management Fee" and
   "Other Fixed Expenses" for daily dividend funds by multiplying the
   composite total by "Percentage Dividend Assets-Class A/Front End",
   "Percentage Dividend Assets-Class B(C)/Back End" and where
   applicable, "percentage Dividend Assets-Class Z/No Fee", and non-
   daily dividend funds by multiplying the composite total by
   "Percentage Assets-Class A/Front End", "Percentage Assets-Class
   B(C)/Back End" " and where applicable, "Percentage Assets-Class
   Z/No Fee"
   
   Agreed the "12b-1 Fee-Class A/Front End" and "12b-1 Fee-Class
   B(C)/Back End" to the respective "PC Expense Worksheet".
   
   Recalculated "Daily Expense," composite and for each class, by
   totaling "Management Fee," "12b-1 Fee" and "Other Fixed Expenses".
   
   Recalculated "Daily Net Income" for each class by subtracting
   "Daily Expense" from "Daily Income".
   
   Recalculated "Dividend Rate" for each class for daily dividend
   funds by dividing "Daily Net Income" by "Dividend Shares Beginning
   of Day-Class A/Front End", "Dividend Shares Beginning of Day-Class
   B(C)/Back End" and where applicable, "Dividend Shares Beginning of
   Day-Class Z/No Fee".
   
   Agreed "Daily Income" and "Income Distribution" for each class to
   the primary accounting system.
   
   Agreed the "Capital Gain Distribution" to the amount recorded in
   the primary accounting system.
   
   Agreed composite total "Realized Gain/Loss" and "Unrealized
   Appreciation/Depreciation" to the primary accounting system.
   
   Recalculated the allocation for each class of "Realized Gain/Loss"
   and "Unrealized Appreciation/Depreciation" by multiplying the
   composite amount by the "Percentage Assets-Class A/Front End",
   "Percentage  Assets-Class B(C)/Back End" and where applicable,
   "Percentage Assets-Class Z/No Fee".
   
   Agreed "Prior Days Net Assets" to the previous day's Worksheet.
   
   Recalculated "Net Assets", composite and for each class, by
   totaling "Daily Net Income", "Income nDistributed", "Capital Stock
   Activity", "Capital Gain Distribution", "Realized Gain/Loss",
   "Unrealized Appreciation/Depreciation", and "Prior Days Net
   Assets".
   
   Recalculated "NAV Per Share" dividing the "Net Assets-Class
   A/Front End", "Net Assets - Class B(C)/Back End" and where
   applicable, "Net Assets-Class Z/No Fee" by "Current Shares
   Outstanding - Class A/Front End", "Current Shares Outstanding -
   Class B(C)/Back End" and where applicable, "Current Shares
   Outstanding-Class Z/No Fee", respectively.
   
   Recalculated "Offering Price" for Class A shares by applying the
   "Load" percentage as stated in the fund's prospectus.
   









PRINT ON COMPAQ
The Board of Trustees of
 Prudential Allocation Fund:
 
In planning and performing our audits of the financial
statements of Prudential Allocation Fund (consisting of the
Balanced Portfolio and the Strategy Portfolio) ("Fund") for
the year ended July 31, 1996, we considered its internal
control structure, including procedures for safeguarding
securities, in order to determine our auditing procedures
for the purpose of expressing our opinion on the financial
statements and to comply with the requirements of Form N-
SAR, not to provide assurance on the internal control
structure.

The management of the Fund is responsible for establishing
and maintaining an internal control structure.  In
fulfilling this responsibility, estimates and judgments by
management are required to assess the expected benefits and
related costs of internal control structure policies and
procedures.  Two of the objectives of an internal control
structure are to provide management with reasonable, but not
absolute, assurance that assets are safeguarded against loss
from unauthorized use or disposition and that transactions
are executed in accordance with management's authorization
and recorded properly to permit preparation of financial
statements in conformity with generally accepted accounting
principles.

Because of inherent limitations in any internal control
structure, errors or irregularities may occur and not be
detected.  Also, projection of any evaluation of the
structure to future periods is subject to the risk that it
may become inadequate because of changes in conditions or
that the effectiveness of the design and operation may
deteriorate.

Our consideration of the internal control structure would
not necessarily disclose all matters in the internal control
structure that might be material weaknesses under standards
established by the American Institute of Certified Public
Accountants.  A material weakness is a condition in which
the design or operation of the specific internal control
structure elements does not reduce to a relatively low level
the risk that errors or irregularities in amounts that would
be material in relation to the financial statements being
audited may occur and not be detected within a timely period
by employees in the normal course of performing their
assigned functions.  However, we noted no matters involving
the internal control structure, including procedures for
safeguarding securities, that we consider to be material
weaknesses as defined above as of July 31, 1996.

This report is intended solely for the information and use
of management and the Securities and Exchange Commission.




September 16, 1996




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