means that the number of shares subscribed by the public is lower than the number of shares offered by the company.

Under subscription

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Calls in arrear

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Over-subscription

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Solution

The correct option is A Under subscription
The public may subscribe less than what is issued. This scenario is called under subscription.

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Similar questions

__________ means that the number of shares subscribed by the public is lower than the number of shares offered by the company.

When the shares offered for public subscription are subscribed fully by the public, then ___

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 limited company offered for subscription of 1,00,000 equity shares of Rs 10 each at a premium of Rs 2 per share. 2,00,000. 10% Preference shares of Rs 10 each at par.

The amount on share was payable as under :

	Equity Shares	Preference Shares
On Application	Rs 3 per share	Rs 3 per share
On Allotment	Rs 5 per share	Rs 4 per share
	(including a premium)
On First Call	Rs 4 per share	Rs 3 per share

All the shares were fully subscribed, called-up and paid.

Record these transactions in the journal and cash book of the company:

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 ___

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means that the number of shares subscribed by the public is lower than the number of shares offered by the company.

The correct option is A Under subscription The public may subscribe less than what is issued. This scenario is called under subscription.

The correct option is A Under subscription
The public may subscribe less than what is issued. This scenario is called under subscription.