CameraIcon

SearchIcon

MyQuestionIcon

1

You visited us 1 times! Enjoying our articles? Unlock Full Access!

Business Studies

Capital Subscription

To receive an...

Question

To receive and deposit the application money bankers are appointed whereas to sell the shares are appointed.

A

promoters

No worries! We‘ve got your back. Try BYJU‘S free classes today!

B

brokers

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

C

directors

No worries! We‘ve got your back. Try BYJU‘S free classes today!

D

underwriters

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Open in App

Solution

The correct option is B brokers
To receive and deposit the application money bankers are appointed whereas to sell the shares brokers are appointed. They encourage the public to buy the shares and charge a commission for the same.

Suggest Corrections

thumbs-up

0

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. 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.

Q. Arti Ltd. offered for subscription 20,000 shares of ₹ 10 each payable ₹ 3 on application, ₹ 5 on allotment and balance on first and final call. Applications were received for 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. Company didn't make first and final call.
You are to prepare the Journal, Cash Book, Ledger Accounts and show 'Share Capital' in the Balance Sheet of the company.

Q. A company invited applications for 25,000 equity shares of Rs 10 each and received 30,000 applications along with the application money of Rs 4 per share. Which of the following alternatives can be followed?
I. Refund the excess applications.
II. Make pro rata allotment to all the applicants, and refund the excess application money.
III. Not to allot any shares to some applicants, full allotment to some of the applicants and pro rata allotment to the rest of the applicants.
IV. Not to allot any shares to some applicants and make pro rate allotment to other applicants.
V. Make pro rata allotment to all the applicants and adjust the excess money received towards call money.

Q. A Co Ltd. was registered with a nominal capital of ₹ 1,00,000 in Equity Shares of ₹ 10 each. It offered to the public 6,000 shares for subscription . The applications were received for 8,000 shares. The Directors rejected applications for 1,000 shares and returned the money received thereon. The application money received on the other 1,000 shares was adjusted towards allotment money. The amount payable on shares was: ₹ 2 per share on application, ₹ 4 per share on allotment and the balance on first call . One shareholders holding 100 shares failed to pay the first call money and as a result his shares were forfeited .
Pass necessary journal entries and prepare Cash Book to record the above transactions.

View More

Join BYJU'S Learning Program

similar_icon

Related Videos

lock

Capital subscription

BUSINESS STUDIES

Watch in App

explore_more_icon

Explore more

Capital Subscription

Standard XI Business Studies

Join BYJU'S Learning Program

CrossIcon