Target Exam

CUET

Subject

-- Accountancy Part A

Chapter

Accounting for Shares

Question:

The company has to get minimum subscription within how many days?

Options:

100

120

140

160

Correct Answer:

120

Explanation:

The correct answer is Option (2) → 120

The company has to get minimum subscription within 120 days from the date of the issue of the prospectus. If the company fails to receive the same within the said period, the company cannot proceed for the allotment of shares and application money should be returned within 130 days of the date of issue of prospectus.