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

under subscription

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over- subscription

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calls in arrear

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calls in advance

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Solution

The correct option is B over- subscription
In the case of oversubscription, the company receives more applications than the number of applications offered to the public for subscription.

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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 ___

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.

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.

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

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

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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 B over- subscriptionIn the case of oversubscription, the company receives more applications than the number of applications offered to the public for subscription.

The correct option is B over- subscription
In the case of oversubscription, the company receives more applications than the number of applications offered to the public for subscription.