Question

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

• A. First Call Money
• B. Final Call Money
• C. First and Final Call Money
• D. Both a and c

Answer 1

Answer: (D)

Both a and c

Shares issued at par is divided into a number of installments. The amount received along with the applications is called application money. Second installment called Allotment money is called by the company at the time of Allotment of shares. The remaining part of the share money called call money is further divided into one or two calls called first call, second call etc. If there is only one call it is called first and final call otherwise we use the word first call only.