Match List – I with List – II. List - I List - II (A) Minimum Subscri… | Accountancy Part A CUET question

Match List – I with List – II.

List - I	List - II
(A) Minimum Subscription	(I) Fundamental provisions & important clause of company's constitution
(B) Prospectus	(II) 90% of issued amount according to SEBI
(C) Reserve Capital	(III) Invitation to the public for Subscription of shares
(D) Memorandum of Association	(IV) Reserved portion of uncalled capital

Choose the correct answer from the options given below.

Answer & explanation

Correct answer: option 2

The correct answer is Option (2) → (A)-(II), (B)-(III), (C)-(IV), (D)-(I)

(A) Minimum Subscription — this matches (II) 90% of issued amount according to SEBI. It is the least amount that must be received before shares can be allotted.

(B) Prospectus — this matches (III) Invitation to the public for Subscription of shares. It gives the public full information about the company and the issue.

(C) Reserve Capital — this matches (IV) Reserved portion of uncalled capital. It can be called only when the company is wound up.

(D) Memorandum of Association — this matches (I) Fundamental provisions & important clause of company's constitution. It is the charter of the company, stating among other things its authorised capital.

NCERT (2026-27 edition):
Minimum Subscription – “… It is to be noted that ‘minimum subscription’ of capital cannot be less than 90% of the issued amount according to SEBI (Disclosure and Investor Protection) Guidelines, 2000 [6.3.8.1 and 6.3.8.2].”

NCERT (2026-27 edition):
Issue of Prospectus – “… Prospectus is an invitation to the public that a new company has come into existence and it needs funds for doing business. It contains complete information about the company and the manner in which the money is to be collected from the prospective investors.”

NCERT (2026-27 edition):
Reserve Capital – “… A company may reserve a portion of its uncalled capital to be called only in the event of winding up of the company. Such uncalled amount is called ‘Reserve Capital’ of the company. It is available only for the creditors on winding up of the company.”

NCERT (2026-27 edition):
Nature and Classes of Shares – “… The amount of authorised capital, together with the number of shares in which it is divided, is stated in the Memorandum of Association but the classes of shares in which the company’s capital is to be divided, along with their respective rights and obligations, are prescribed by the Articles of Association of the company. As per The Companies Act, a company can issue two types of shares (1) preference shares, and (2) equity shares (also called ordinary shares).”