Company Accounts

Share Capital

Easy

common

It is to be noted that 'minimum subscription' of capital cannot be less than ……… of the issued amount according to SEBI Guidelines (Disclosure and Investor Protection)

60%

90%

75%

10%

✅ Correct Option: 2

According to SEBI (Issue of Capital and Disclosure Requirements) Regulations, the minimum subscription of capital for a public issue cannot be less than 90% of the issued amount.

This means if a company issues shares to the public, it must receive applications for at least 90% of the total shares offered. If subscriptions received are below this threshold, the entire amount collected from applicants must be refunded within the prescribed time period.

For example, if a company issues 1,00,000 shares to the public, it must receive applications for at least 90,000 shares (90% of 1,00,000) for the issue to be considered successful.

This provision protects investors by ensuring that only adequately subscribed issues proceed, thereby maintaining market confidence and preventing companies from operating with insufficient capital.

Correct Option: 2 (90%)

2025: 22 May Shift 2

There must be an interval of how many months between the making of two calls unless otherwise provided by the articles of association of the company.

2026: 31 May Shift 1

Applications Supported by Blocked Amount (ASBA) is a process developed by........................to apply for subscribing to IPOs and Rights Issue etc. of securities.

2025: 14 May Shift 1

Arrange the following capitals in correct sequence as they appears in notes to account-

(A) Subscribed and Not Fully paid-up

(B) Subscribed and Fully paid-up

(D) Nominal Capital

Choose the correct answer from the options given below:

2026: 13 May Shift 2

Due to non-payment of call money, a company has forfeited shares which were issued at premium earlier and the premium amount has been received on those shares. How securities premium reserve account will be shown in the journal entry of forfeiture of shares ?

2025: 15 May Shift 2

Match List-I with List-II

List-I	List-II
(A) Calls in Advance A/c Dr. To Particular Call A/c	(I) For Interest due on Calls in Advance
(B) Interest on Calls in Advance A/c Dr. To Sundry Shareholder's A/c	(II) For Interest Paid on Calls in Advance
(C) Sundry Shareholder's A/c Dr. To Bank A/c	(III) Calls in advance adjusted with the call money due
(D) Bank A/c Dr. To Calls in Arrears A/c To Interest on Calls in Arrears A/c	(IV) Calls in arrears received with interest

Choose the correct answer from the options given below:

2026: 11 May Shift 1

Arrange the following steps in order of occurrence in share capital accounting treatment

A. Allotment of shares

B. Forfeiture of shares

C. Share forfeited amount transferred to capital reserve

D. Minimum subscription received

Choose the correct answer from the options given below:

It is to be noted that 'minimum subscription' of capital cannot be less than ……… of the issued amount according to SEBI Guidelines (Disclosure and Investor Protection)

Solution

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