Match List-I with List-II:List-IList-II(A) Under Subscription(I) Issue of Shares at an amount more than the nominal or par value of shares.(B) Issue of Shares at a Premium(II) It is a situation where the number of shares applied for is less than the number for which applications have been invited for subscription.(C) Over Subscription(III) The amount so received from the shareholders when shareholders pay a part or the whole of the amount of the calls not yet made.(D) Calls in Advance(IV) When applications for more shares of a company are received than the number offered to the public for subscription.Choose the correct answer from the options given below:
- A(A) - (I), (B) - (II), (C) - (III), (D) - (IV)
- B(A) - (II), (B) - (I), (C) - (IV), (D) - (III)
- C(A) - (I), (B) - (II), (C) - (IV), (D) - (III)
- D(A) - (III), (B) - (IV), (C) - (I), (D) - (II)
Solution & Step-by-step Explanation
Matching the accounting terms with their definitions:Under Subscription (A): Occurs when the number of shares applied for by the public is less than the shares offered (II)Issue of Shares at a Premium (B): Means shares are issued at a price higher than their face/nominal value (I)Over Subscription (C): Occurs when the public applies for more shares than the company offered (IV)Calls in Advance (D): Amount received from shareholders before the company makes the official call (III)Hence, the correct matching is (A) - (II), (B) - (I), (C) - (IV), (D) - (III).