When the directors decide to fully accept some applications and totally reject the others, the application money received on rejected applications are ___

None of the above

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Adjusted in allottment

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Partially refunded

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Fully refunded

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Solution

The correct option is D
Fully refunded

When the directors decide to fully accept some applications and totally reject the others, the application money received on rejected applications are fully refunded.

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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?

A company invited applications for 20,000 shares and received the applications for 25,000 shares. The directors rejected the applications for 5,000 shares. Amount paid on application was Rs 10 per share. How much amount shall be refunded?

Q. Vijay Laxmi Ltd. invited applications for 10,000; 12% Debentures of ₹ 100 each at a premium of ₹ 70 per debenture .The full amount was payable on application.
Applications were received for 13,500 debentures. Applications for 3,500 debentures were rejected and application money was refunded . Debentures were allotted to the remaining applications .

When the application for some shares are rejected outrightly and pro-rata allotment is made to the remaining applicants, the money on rejected applications are ______.

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.

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When the directors decide to fully accept some applications and totally reject the others, the application money received on rejected applications are ___

The correct option is D Fully refunded When the directors decide to fully accept some applications and totally reject the others, the application money received on rejected applications are fully refunded.

The correct option is D
Fully refunded

When the directors decide to fully accept some applications and totally reject the others, the application money received on rejected applications are fully refunded.