Target Exam

CUET

Subject

-- Accountancy Part A

Chapter

Accounting for Shares

Question:

While issuing the share capital for public subscription, the application money should be at least.......% of the face value of the share.

Options:

25%

5%

10%

15%

Correct Answer:

5%

Explanation:

The correct answer is option 2- 5%.

Application money should be at least 5% of the face value of the share. For e.g. if a share having a face value of ₹100 is issued then a minimum ₹5 must be collected by the company on application.