Match List-I with List-II List-I List-II (A) Calls in Arrears (I) Som…

Match List-I with List-II

List-I	List-II
(A) Calls in Arrears	(I) Sometimes shareholders pay a part or the whole of the amount of the calls not yet made.
(B) Calls in Advance	(II) When any shareholder fails to pay the amount due on allotment or on any of the calls
(C) Over Subscription	(III) When number of shares applied for is less than the number for which applications have been invited for subscription
(D) Under Subscription	(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:

Answer & explanation

Correct answer: option 3

The correct answer is Option (3) → (A)-(II), (B)-(I), (C)-(IV), (D)-(III)

Calls in arrears and calls in advance are about the timing of payment on calls; over- and under-subscription are about the number of shares applied for against the number offered.

(A) Calls in Arrears — this matches (II) When any shareholder fails to pay the amount due on allotment or on any of the calls. The unpaid amount is the calls in arrears (unpaid calls).

(B) Calls in Advance — this matches (I) Sometimes shareholders pay a part or the whole of the amount of the calls not yet made. Money received before the call is made is calls in advance, a liability of the company.

(C) Over Subscription — this matches (IV) When applications for more shares of a company are received than the number offered to the public for subscription. Applications exceed the shares offered.

(D) Under Subscription — this matches (III) When number of shares applied for is less than the number for which applications have been invited for subscription. Applications fall short of the shares offered.

NCERT (2026-27 edition):
Calls in Arrears – “… When any shareholder fails to pay the amount due on allotment or on any of the calls, such amount is known as ‘Calls in Arrears’/‘Unpaid Calls’.”

NCERT (2026-27 edition):
Calls in Advance – “Sometimes shareholders pay a part or the whole of the amount of the calls not yet made. The amount so received from the shareholders is known as “Calls in Advance”. The amount received in advance is a liability of the company and should be credited to ‘Call in Advance Account.”

NCERT (2026-27 edition):
Over Subscription – “There are instances when applications for more shares of a company are received than the number offered to the public for subscription. This usually happens in respect of shares issue of well-managed and financially strong companies and is said to be a case of ‘Over Subscription’.”

NCERT (2026-27 edition):
Under Subscription – “Under subscription is a situation where number of shares applied for is less than the number for which applications have been invited for subscription.”