Company Accounts

Share Capital

Easy

common

Minimum subscription means subscription of shares should not be less than _______.

90% of issued amount

90% of authorised amount

90% of subscribed amount

90% of called-up amount

✅ Correct Option: 1

As per SEBI guidelines, a company making a public issue must receive applications for at least 90 percent of the issued amount. If this minimum subscription is not received, no allotment can be made and the entire application money must be refunded within the prescribed period.

2022: 20 July Shift 1

Identify the statement that is/are not true from the following.

(a) Shares can be forfeited for non payment of call money.

(b) The profit on forfieted shares is transferred to capital reserve.

(d) Application money should be at least 10% of the face value of the share.

Choose the correct answer from the options given below :

2025: 24 May Shift 1

Match List-I with List-II

List-I	List-II
Allotment of Shares	Journal Entry
(A) For Transfer of Application Money	(I) Share Application A/c Dr. To Bank A/c
(B) For Money Refunded on Rejected Application	(II) Bank A/c Dr. To Share Allotment A/c
(C) For Amount Due on Allotment	(III) Share Application A/c Dr. To Share Capital A/c
(D) For Receipt of Allotment Money	(IV) Share Allotment A/c Dr. To Share Capital A/c

Choose the correct answer from the options given below:

2022: 20 July Shift 1

PQR Ltd. issued 40,000 Equity shares of Rs. 10 each at par payable Rs. 3 on application, Rs. 4 on allotment and balance on first and final call. Applications were received for 1,10,000 shares. Applications for 20,000 shares were refused and allotment was made prorata to remaining applicants. Amount received on allotment is :

2026: 11 May Shift 1

150 shares of Mr. Ram of Rs.10 each issued at a premium of Rs.4 per share payable with allotment were forfeited for non-payment of allotment money of Rs.8 per share including premium. The first and final call of Rs.4 per share was not made. The forfeited shares were reissued at Rs.15 per share fully paid-up. Calculate the amount transferred to capital reserve.

2023: 28 May Shift 1

Match List - I with List - II.

List - I	List - II
(A) Over Subscription	(I) Minimum amount that must be raised by issue of shares
(B) Minimum subscription	(II) Application received is more than shares issued
(C) Under Subscription	(III) Allotment of shares without issue of prospectus
(D) Private Placement	(IV) Application received is less than shares issued

Choose the correct answer from the options given below :

2022: 16 July Shift 2

Identify the correct sequence of steps in the process of Issue of Shares:

A. Making allotment of shares

B. Issue of Prospectus

C. Forfeiture of shares

D. Receiving applications for shares

E. Making calls

Choose the correct answer from the options given below:

Minimum subscription means subscription of shares should not be less than _______.

Solution

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