When shares are not payable in a lump sum, third instalment is called ______________.

Application Money

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Allotment Money

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First Call Money

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Final Call money

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Solution

The correct option is D Final Call money
Final call: The remaining amount of the shares allotted is called up by writing a letter to the shareholders which are known as calls on the share. Such remaining amount is called up after receiving the allotment money. The balance of share money can be called up either in one or two installments. If the entire balance of share is called up at once, it is called ‘first and final call’. However, if the balance of share is called up in two different installments, it is called first call and second and final call respectively.

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