Match List-I with List-IIList-IList-II(A)Issue price of share is high…

Match List-I with List-II

List-I		List-II
(A)	Issue price of share is higher than its nominal value	(I)	Pro-rata Allotment
(B)	Money not received on first call	(II)	Securities Premium Reserve
(C)	Money of Second & Final Call received with First Call	(III)	Calls in arrear A/c
(D)	Share issued 5000 and Application received for 7,000 shares	(IV)	Calls in advance A/c

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)

Each item is a basic term of share issue; match it by what the money is.

(A) Issue price of share is higher than its nominal value — this matches (II) Securities Premium Reserve. The excess over the nominal value is the premium, credited to its own account.

(B) Money not received on first call — this matches (III) Calls in arrear A/c. It is money called but not paid by the due date.

(C) Money of Second & Final Call received with First Call — this matches (IV) Calls in advance A/c. It is money paid before the call is made, a liability until the call falls due.

(D) Share issued 5000 and Application received for 7,000 shares — this matches (I) Pro-rata Allotment. More applications than shares is over subscription, and the shares may then be allotted in proportion to the applications.

NCERT (2026-27 edition):
Summary – “… In case shares are issued at a premium, i.e. at an amount more than the nominal or par value of shares, the amount of premium is credited to a separate account called ‘Securities Premium Reserve Account’, the use of which is strictly regulated by law.”

NCERT (2026-27 edition):
Summary – “… Calls in Arrears: Sometimes, the full amount called on allotment and/or call (calls) is not received from the allottees/shareholders. The amount not so received are cumulatively called ‘Unpaid calls’ or ‘Calls in Arrears’. However, it is not mandatory for a company to maintain a separate Calls-in-Arrears Account. There are also instances where some shareholders consider it discreet to pay a part or whole of the amount not yet called-up on the shares allotted to them. Any amount paid by a shareholder in the excess of the amount due from him on allotment/call (calls) is known as ‘Calls in Advance’ for which a separate account is maintained.”

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’.”