Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Accounting for Shares

Question:
The second installment collected by the company on its issued shares is called:
Options:
Application Money
Allotment Money
First call
Second call
Correct Answer:
Allotment Money
Explanation:
The first instalment is collected along with application and is thus, known as application money, the second on allotment (termed as allotment money), and the remaining instalments are termed as first call, second call and so on. The word final is suffixed to the last instalment.