Accountancy Part AAccounting for Shares

Identify the steps of the procedure of share issue: (A) Allotment of…

Identify the steps of the procedure of share issue:

(A) Allotment of Shares
(B) Receipt of Applications
(C) Issue of Prospectus
(D) Share Call

Choose the correct answer from the options given below:

Answer & explanation

Correct answer: option 4

The correct answer is Option (4) → (C), (B), (A), (D)

Share issue moves from inviting the public to collecting the last instalment.

(C) Issue of Prospectus
(B) Receipt of Applications
(A) Allotment of Shares
(D) Share Call

Note: The question asks only to identify the steps, not to put them in order. All four options name the same four steps and differ only in their order, so the question is read as asking for the correct sequence, which is (C), (B), (A), (D).

NCERT (2026-27 edition):
Issue of Shares

Extract from the NCERT textbook

NCERT (2026-27 edition):
Accounting Treatment – “… On Calls : Calls play a vital role in making shares fully paid-up and for realising the full amount of shares from the shareholders. In the event of shares not being fully called up till the completion of allotment, the directors have the authority to ask for the remaining amount on shares as and when they decide about the same.”