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Allotment of Shares

The next step...

Question

The next step in the issue of shares after receiving share application money is ___

A

None of the above

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B

Allottment of shares

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C

Receiving Application money

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D

Issue of Prospectus

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Solution

The correct option is B
Allottment of shares

The next step in the issue of shares after receiving share application money is allotment of shares.

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Similar questions

Q. If a company receives excess application money and the application money equal to shares issued transferred to Share Capital A/c and application money received on excess shares-some money is adjusted and against allotment and remaining was refunded, then which of the following entry is correct?

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?

Q. 'Samta Limited invited applications for issuing

6, 750

equity shares of

R s 10

each. The amount was payable as follows : On application -

R s 3

per share
On allotment -

R s 5

per share
On first and final call -

R s 2

per share
The issue was fully subscribed. Subhash applied for

250

shares and paid his entire share money with application. Moti applied for

175

shares and paid allotment money also with application. The amount received with applications was :

Q. Bhuvan Ltd. issues 5,00,000 shares of 310 each for public subscription. Application along with money was received for 4,00,000 shares. Can company allot these shares? Explain.

Q. ABC Company Ltd.offered for subscription 20,000 shares of ₹ 10 each payable ₹ 3 on application and ₹ 5 on allotment for each share. Applications were received fro 30,000 shares . Letters of regret were issued to applicants for 5,000 shares and their application money was refunded . Application money for other 5,000 shares was applied towards the payment for allotment money . The balance of allotment money was also received in due time .
You are to prepare the journal , Cash Book , Ledger Accounts and the Balance Sheet of the company.

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