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Standard XII

Accountancy

Allotment of Shares

The first ste...

Question

The first step in the issue of shares is __________.

None of the above

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Allotment of Shares

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Issue of Prospectus

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Receipt of Applications

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Solution

The correct option is C
Issue of Prospectus

The first step in the issue of shares is issue of prospectus.

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Similar questions

Q. Consider the following steps in the process of allotment of shares.
1. Issue of prospectus
2. Appointment of manager to the issue
3. Receipt of application money
4. Listing in a stock exchange
5. Minimum subscription
The correct chronological sequence of these steps is :

Q. A limited company issued a prospectus inviting application for 2,000 shares of Rs.10 each at premium of Rs. 2 per share payable ass follows:
On application - Rs. 2
On allotment - Rs. 5 (including premium)
On 1st call - Rs. 3
On llnd final call - Rs. 2
Application were received for 3,000 shares and allotment was mad on pro-rata basis to applicant of 2,400 shares. Money received in excess on application was adjusted towards allotment.
Ramesh whom 40 shares were allotted, failed to pay allotment money & first call his shares were forfeited. Find the number of shares Ramesh has applied for?

Guru Ltd. invited applications for issuing 5,00,000 equity shares of Rs 10. each at a premium or Rs 5 per share. Because of favourable market conditions the issue was oversubscribed and applications for 15,00,000 shares were received.

Suggest the alternatives available to the Board of Directors for the allotment of shares?

Q. 'Nigam Limited' invited applications for issuing

15, 000

equity shares of

R s 10

each at a discount of

R s 1

per share. The amount was payable as follows:
On application -

R s 2

per share
On allotment -

R s 3

per share
On first and final call -

R s 4

per share
Applications for

18, 000

shares were received. Shares were issued proportionately to all applicants. Excess money received with applications was adjusted towards sums due on allotment. Ramesh who had applied for

360

share failed to pay allotment, and first and final call money. Naresh to whom

150

shares were allotted failed to pay the first and final call money. Shares of both Ramesh and Naresh were forfeited. Out of the forfeited shares,

200

shares were re-issued at

R s 9

per share as fully paid up. The re-issued shares included all the shares of Naresh.
Pass necessary journal entries for the above transactions in the books of 'Nigam Limited'.

Q. Large Ltd. issued 25,000 equity shares of Rs.100 each at a premium of Rs.15 each payable as Rs.25 on application, Rs.40 on allotment and balance in the first call. The applications were received for 75,000 equity shares. The above is the case of ____________.

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The first step in the issue of shares is __________.

The correct option is C Issue of Prospectus The first step in the issue of shares is issue of prospectus.

The correct option is C
Issue of Prospectus

The first step in the issue of shares is issue of prospectus.