Oversubscription

Q. What is a ‘Preference Share’? Describe the different types of preference shares.

Q.

What Are the 7 Types of Business?

Q. ABC Company Ltd.offered for subscription 20, 000 shares of ₹ 10 each payable ₹ 3 on application and ₹ 5 on allotment for each share. Applications were received fro 30, 000 shares . Letters of regret were issued to applicants for 5, 000 shares and their application money was refunded . Application money for other 5, 000 shares was applied towards the payment for allotment money . The balance of allotment money was also received in due time .
You are to prepare the journal , Cash Book , Ledger Accounts and the Balance Sheet of the company.

Q.

There are instances when applications for more shares of a company are received than the number offered to the public for subscription. It is known as ___

1. Over subscription

2. Securities premium

3. None of these

4. Under subscription

Q.

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?

1. None of these

2. Rs 50000

3. Rs 250000

4. Rs 200000

Q.

Which of the following options are available to directors in case of oversubscription ?

1. All of these

2. They can adopt a combination of the above two alternatives

3. They can make a pro-rata allotment to all

4. They can accept some applications in full and totally reject the others

Q.

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

1. Adjusted in allottment

2. None of the above

3. Partially refunded

4. Fully refunded

Q. Fill in the blank with the most appropriate word.
We live in the city. If only we _____ in the city!

1. Lived
2. Haven't lived
3. Living
4. Didn't live

Q.

Oversubscription usually happens in ___

1. None of the above

2. Govt companies

3. well-managed and financially strong companies

4. Foreign companies

Q. Extract of trial balance of Mr. Q is as follows:

Particulars	Dr. Rs	Cr. Rs
Sundry debtors	1, 00, 000	-
Sundry creditors	-	78, 000

Additional information:
Included in sundry debtors Rs 5, 000 due from Mr A. Included in sundry creditors Rs 2, 000 payable to Mr. A.
Sundry debtors and creditors will appear in balance sheet at Rs _________ & Rs ____________.

1. 95, 000, 76, 000
2. 98, 000, 72, 000
3. 97, 000, 75, 000
4. 98, 000, 76, 000

Q. Rakesh inherited 1 acre of land from his grandfather who paid Rs. 10, 000 cash for the land back in 1951. Today, land in the area sells for Rs. 2, 00, 000 per acre. What is the opportunity cost to Rakesh for keeping the land?

1. Rs. 10, 000, since this is what Rakesh's grandfather paid.
2. Rs. 2, 00, 000, since this is what Rakesh is giving up by keeping the land.
3. Nothing, since the land was inherited.
4. Nothing, since the grandfather paid cash.

Q.

In What Circumstances Can You Insist on a Refund?

Q. Change the sentence with 'as soon as' to sentence with 'no sooner than'.
As soon as Ron finished his studies, he got a good job.

1. No sooner has Ron finished his studies than he got a good job.
2. No sooner did Ron finished his studies than he got a good job.
3. No sooner does Ron finish his studies than he gets a good job.
4. No sooner had Ron finished his studies than he got a good job.

Q. Transform sentences with 'as soon as' to sentences with 'no sooner than'.
As soon as you give him a toy, he breaks it.

1. No sooner did you gave him a toy than he breaks it.
2. No sooner do you give him a toy than he breaks it.
3. No sooner does he give him a toy than he breaks it.
4. No sooner did you give him a toy than he breaks it.

Q. The person in whose favor a bill is endorsed is known as _______.

1. Drawer
2. Endorser
3. Endorsee
4. Payee

Q. A company which has a lot of public approval can quote a very high premium.

1. False
2. True

Q. (a) I asked him (b) what had brought (c) him there.

1. (a)
2. (b)
3. (c)
4. No error

Q. Choose the indirect speech of the given sentence.
Mona said, "I love oranges but my brother likes apples."

1. Mona said that she loved oranges but her brother liked apples.
2. Mona said that she loves oranges but my brother likes apples.
3. Both B and C.
4. Mona said that I loved oranges but my brother liked apples.

Q.

Which of the following statement is false?

1. The share application money is automatically converted to share capital.

2. Shares can be issued for cash or any other consideration.

3. In the event of over subscription, excess amount has to be refunded or a pro rata allotment is to be made.

4. Called up capital is that part of the subscribed capital, that has been called up.

Q. A company issued 10, 000 shares and received applications for 8, 000 shares. This situation is called under-subscription of shares.

1. False
2. True

Q. In case of oversubscription, the application money received on rejected applications is not refunded.

1. True
2. False

Q. Fill in the blank with the most appropriate word.
We live in the city. We wish we _____ in the country.

1. Have lived
2. Lived
3. Living
4. Live

Q. Select the most appropriate answer the alternatives given below and rewrite the Sentences.

If Opening Capital is Rs 40, 000, Closing Capital is 90, 000 Rs, Withdrawals is Rs 5, 000 and additional Capital brought in is Rs 10, 000 Profit is Rs ______________.
a) 45, 000
b) 55, 000
c) 35, 000
d) 75, 000