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 ___

None of these

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Under subscription

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Over subscription

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Securities premium

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Solution

The correct option is C
Over subscription

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 oversubscription.

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Similar questions

Q. When applications for more shares of a company are received than the number offered to the public for subscription, it is known as .

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.

Q. When a company receives application for subscriptions to the shares of the company much more than the issued capital, the issue is called __________.

On April 1,2018, a Limited Company was incorporated with an authorised capital of Rs 8,00,000 divided into shares of Rs 10 each.

It offered to the public for subscription of 60,000 shares payable as follows:

$\begin{matrix} On Application & Rs 3 per share On Application (May 1,2018) & Rs 2 per share On First and Final Call (One month after allotment) & Rs 5 per share \end{matrix}$

Public applied for 92,000 shares and the application money was duly received on April 15, 2018.Applications for 2,000 shares were rejected and applicants for 90,000 shares were allotted 60,000 shares.

Give journal entries to record the transactions in the books of the company if:

(i) The amount due has been duly received.

(ii) The company maintains the combined account for application and allotment.

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

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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 ___

The correct option is C Over subscription 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 oversubscription.

The correct option is C
Over subscription

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 oversubscription.