A public company has 1 lakh shares for public subscription- Which of the following situation is depicted in the table shown below- beginarray - c - c - c -Whine Person - Shares AppliedWhine 1 - 25 kWhine2 - 25 kWhine3 - 25 k Whine array A- Under-subscriptionB- Ideal subscriptionC- None of the aboveD- Over-subscription

You visited us 5 times! Enjoying our articles? Unlock Full Access!

Byju's Answer

Standard XI

Business Studies

Subscription Rule

A public comp...

Question

A public company has 1 lakh shares for public subscription. Which of the following situation is depicted in the table shown below?

$\begin{matrix} P e r s o n & S h a r e s A p p l i e d 1 & 25 k 2 & 25 k 3 & 25 k \end{matrix}$

Over-subscription

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

Under-subscription

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

Ideal subscription

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

None of the above

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

Open in App

Solution

The correct option is B
Under-subscription

This corresponds to under-subscription because the company offered 1 lakh shares but only 75k shares were applied. When people apply for fewer shares than what the company had offered, it depicts the case of under-subscription.

Suggest Corrections

Similar questions

A public company has 1 lakh shares for public subscription. Does the table shown below satisfy the minimum subscription rule as specified by SEBI?

$\begin{matrix} P e r s o n & S h a r e s A p p l i e d 1 & 25 k 2 & 25 k 3 & 25 k \end{matrix}$

Name the document which invites the public for share subscription of a company.

Q. Himalaya Company Limited issued for public subscription of 1,20,000 equity shares of Rs.10 each at a premium of Rs.2 per share payable as under

\begin{matrix} (Rs) With Application & 3 per share On Allotment (including premium) & 5 per share On First Call & 2 per share On Second and Final call & 2 per share \end{matrix}

Applications were received for 1,60,000 shares. Allotment was made on pro-rata basis. Excess money on application was adjusted against the amount due on allotment.
Rohan, whom 4,800 shares were allotted, failed to pay for the two calls. These shares were subsequently forfeited after the second call was made. All the shares forfeited were reissued to Teena as fully paid at Rs.7 per share.

Record journal entries in the books of the company to record these transactions relating to share capital. Also show the company's balance sheet.

Q. Below table shows the sales of a firm over 3 consecutive years. Identify the type of classification of this data.

\begin{matrix} Y e a r s & S a l e s (i n R u p e e s) 2010 & 50 l a k h s 2011 & 25 l a k h s 2012 & 35 l a k h s \end{matrix}

Q. 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.

Join BYJU'S Learning Program

A public company has 1 lakh shares for public subscription. Which of the following situation is depicted in the table shown below? PersonShares Applied125k225k325k

The correct option is B Under-subscription This corresponds to under-subscription because the company offered 1 lakh shares but only 75k shares were applied. When people apply for fewer shares than what the company had offered, it depicts the case of under-subscription.

A public company has 1 lakh shares for public subscription. Which of the following situation is depicted in the table shown below?

$\begin{matrix} P e r s o n & S h a r e s A p p l i e d 1 & 25 k 2 & 25 k 3 & 25 k \end{matrix}$

The correct option is B
Under-subscription

This corresponds to under-subscription because the company offered 1 lakh shares but only 75k shares were applied. When people apply for fewer shares than what the company had offered, it depicts the case of under-subscription.