Target Exam

CUET

Subject

-- Accountancy Part A

Chapter

Accounting for Shares

Question:

When a company issues shares at a premium, the company can collect Securities Premium along with the :-

Options:

Allotment Money

Call Money

Application Money

Any of these

Correct Answer:

Any of these

Explanation:

The correct answer is Option (4) → Any of these

When a company issues shares at a premium, the Securities Premium (amount received over and above the face value of shares) can be collected at any stage of the share issue process — as long as it is before the shares are allotted in full.

Therefore, the premium amount can legally be called and collected along with:

  • Application Money, or

  • Allotment Money, or

  • Call Money

depending on what is stated in the terms of issue in the company’s prospectus or resolution.