Accountancy Part AAccounting for Shares

Arrange the following steps related to the issue of shares in proper…

Arrange the following steps related to the issue of shares in proper sequence.

(A) Allotment of Shares

(B) Receipt of Applications

(D) Share calls

Choose the correct answer from the options given below:

Answer & explanation

Correct answer: option 4

The correct answer is Option (4) → (C), (B), (A), (D)

Shares are issued to the public in a fixed order, from the invitation to the collection of the last instalment:

(C) Issue of Prospectus

(B) Receipt of Applications

(A) Allotment of Shares

(D) Share calls

NCERT (2026-27 edition):
Issue of Shares – “… The important steps in the procedure of share issue are : • Issue of Prospectus: The company first issues the prospectus to the public. Prospectus is an invitation to the public that a new company has come into existence and it needs funds for doing business.”

NCERT (2026-27 edition):
Issue of Shares – “… • Receipt of Applications: When prospectus is issued to the public, prospective investors intending to subscribe the share capital of the company would make an application along with the application money and deposit the same with a scheduled bank as specified in the prospectus.”

NCERT (2026-27 edition):
Allotment of Shares – “… If minimum subscription has been received, the company may proceed for the allotment of shares after fulfilling certain other legal formalities.”

NCERT (2026-27 edition):
Accounting Treatment – “… On Calls : Calls play a vital role in making shares fully paid-up and for realising the full amount of shares from the shareholders.”