Match List-I with List-II List-I List-II (A) Under Subscription (I) I…

Match List-I with List-II

List-I	List-II
(A) Under Subscription	(I) Issue of Shares at an amount more than the nominal or par value of shares.
(B) Issue of Shares at a Premium	(II) It is a situation where the number of shares applied for is less than the number for which applications have been invited for subscription.
(C) Over Subscription	(III) The amount so received from the shareholders when shareholders pay a part or the whole of the amount of the calls not yet made.
(D) Calls in Advance	(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 2

The correct answer is Option (2) → (A)-(II), (B)-(I), (C)-(IV), (D)-(III)

Each term describes how many shares are applied for, at what price they are issued, or when the money comes in.

(A) Under Subscription — this matches (II) It is a situation where the 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; allotment is then made only for the shares applied for, provided the minimum subscription is received.

(B) Issue of Shares at a Premium — this matches (I) Issue of Shares at an amount more than the nominal or par value of shares. The excess over face value is credited to the Securities Premium Reserve Account.

(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. The directors then reject some applications, allot pro-rata, or do both.

(D) Calls in Advance — this matches (III) The amount so received from the shareholders when shareholders pay a part or the whole of the amount of the calls not yet made. The money comes in before the call is made and is a liability of the company until the call falls due.

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.”

NCERT (2026-27 edition):
Issue of Shares at a Premium – “It is quite common for the shares of financially strong and well-managed companies to be issued at a premium, i.e. at an amount more than the nominal or par value of shares. Thus, when a share of the nominal value of Rs. 100 is issued at Rs. 105, it is said to have been issued at a premium of 5 per cent.”

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):
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”.”