Accountancy Part AAccounting for Shares

Choose the correct order regarding issue of shares process.(A) Receip…

Choose the correct order regarding issue of shares process.

(A) Receipt of Applications

(B) Issue of Prospectus

(D) Forfeiture of share

Choose the correct answer from the options given below:

Answer & explanation

Correct answer: option 2

The correct answer is Option (2) → B, A, C, D

(B) Issue of Prospectus

(A) Receipt of Applications

(C) Allotment of Shares

(D) Forfeiture of share — this comes last, because a share can be forfeited only after it has been allotted and the holder has failed to pay the allotment or call money due on it.

NCERT (2026-27 edition):
Issue of Shares

Extract from the NCERT textbook

NCERT (2026-27 edition):
Forfeiture of Shares – “It may happen that some shareholders fail to pay one or more instalments, viz. allotment money and/or call money. In such circumstances, the company can forfeit their shares, i.e. cancel their allotment and treat the amount already received thereon as forfeited to the company within the framework of the provisions in its articles.”