Comprehension:Read the following passage carefully and answer the questions that follow. X Ltd. issued 30,000 shares to the public having a Face Value - CUET Accountancy MCQ CUET Accountancy 2025 16 May Shift 1 2026 | ExamTest.live

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Comprehension:Read the following passage carefully and answer the questions that follow. X Ltd. issued 30, 000 shares to the public having a Face Value of ₹ 100 at a 10% premium. The money is receivable as follows:Application = ₹ 40 (including premium)Allotment = ₹ 45 First and Final call = Remaining amountThe public applied for 50, 000 shares. The company rejected applications for 10, 000 shares and made a pro-rata allotment to the remaining applicants. A shareholder who had applied for 400 shares failed to pay the allotment and call money, and his shares were subsequently forfeited by the company. Later, these forfeited shares were reissued at ₹ 80 each as fully paid.What type of share subscription took place in this scenario?

Solution & Step-by-step Explanation

The company offered/issued 30, 000 shares, but the public applied for 50, 000 shares. Whenever the number of shares applied for by the public is greater than the number of shares offered for subscription by the company, it is a clear case of Over-subscription.

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Comprehension:Read the following passage carefully and answer the questions that follow. X Ltd. issued 30, 000 shares to the public having a Face Value of ₹ 100 at a 10% premium. The money is receivable as follows:Application = ₹ 40 (including premium)Allotment = ₹ 45 First and Final call = Remaining amountThe public applied for 50, 000 shares. The company rejected applications for 10, 000 shares and made a pro-rata allotment to the remaining applicants. A shareholder who had applied for 400 shares failed to pay the allotment and call money, and his shares were subsequently forfeited by the company. Later, these forfeited shares were reissued at ₹ 80 each as fully paid.What type of share subscription took place in this scenario?

Full subscription

Under subscription

Over subscription

Partial Subscription

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