A company offered 2,00,000 shares for subscription to the public, but the applications were received for 1,90,000 shares only. The allotment will be confirmed to _________ shares.

2,00,000

No worries! We‘ve got your back. Try BYJU‘S free classes today!

1,90,000

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

3,90,000

No worries! We‘ve got your back. Try BYJU‘S free classes today!

10,000

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Open in App

Solution

The correct option is D 1,90,000
Company offered 2,00,000 shares for subscription to the public but the applications where received for 1,90,00 shares, only. In such a situation, the allotment will be confirmed to 1,90,000 shares and entries shall be made accordingly. However, it must be ensured that the company has received the minimum subscription (not less than 90% of the offer) otherwise the procedure for issue of shares cannot proceed further and the company will have to refund the entire subscription amount received.

Suggest Corrections

Similar questions

Q. A company invited application for subscription of

5000

shares. The application were received for

6000

shares. The shares were allotted on pro-rata bases. If Shyam applied for

180

shares, how many shares would be allotted to him?

Q. When applications for more shares of a company are received than the number offered to the public for subscription, it is known as .

A company has offered for subscription to the public 10,000 shares of Rs 10 each. It has received applications for 15,000 shares. Company has decided to allot shares on prorata basis. Gunakshi holding 200 shares failed to pay

allotment money and first call money. Her shares were forfeited :

Amount payable was as under :

Rs 2 per share on application.

Rs 3 per share on allotment.

Rs 5 per share on call.

Calculate the amount unpaid on allotment.

On April 1,2018, a Limited Company was incorporated with an authorised capital of Rs 8,00,000 divided into shares of Rs 10 each.

It offered to the public for subscription of 60,000 shares payable as follows:

$\begin{matrix} On Application & Rs 3 per share On Application (May 1,2018) & Rs 2 per share On First and Final Call (One month after allotment) & Rs 5 per share \end{matrix}$

Public applied for 92,000 shares and the application money was duly received on April 15, 2018.Applications for 2,000 shares were rejected and applicants for 90,000 shares were allotted 60,000 shares.

Give journal entries to record the transactions in the books of the company if:

(i) The amount due has been duly received.

(ii) The company maintains the combined account for application and allotment.

There are instances when applications for more shares of a company are received than the number offered to the public for subscription. It is known as ___

Join BYJU'S Learning Program