If issued capital is Rs. 5 lakhs and subscribed capital is Rs. 4 lakhs, then this is called subscription.

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Solution

The correct option is B under
If subscribed capital is less than issued capital, it is called under subscription. In this case, the issued capital is Rs.5,00,000 and subscribed capital is Rs.4,00,000 which is less than issued capital. Therefore this situation is called under subscription.

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If issued capital is Rs. 5 lakhs and subscribed capital is Rs. 4 lakhs, then this is called subscription.

The correct option is B under If subscribed capital is less than issued capital, it is called under subscription. In this case, the issued capital is Rs.5,00,000 and subscribed capital is Rs.4,00,000 which is less than issued capital. Therefore this situation is called under subscription.

The correct option is B under
If subscribed capital is less than issued capital, it is called under subscription. In this case, the issued capital is Rs.5,00,000 and subscribed capital is Rs.4,00,000 which is less than issued capital. Therefore this situation is called under subscription.