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Oversubscription & Prorata in Accounting

Yes or No

Played 2

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ACCOUNTANCY

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Oversubscription & Prorata in Accounting
 

Oversubscription & Prorata in AccountingOnline version

ACCOUNTANCY

by Kavya
1

In oversubscription, a company can reject some applications completely. Yes / No

2

Pro-rata allotment means every applicant gets the exact number of shares they applied for. Yes / No

3

Excess application money can be adjusted towards allotment.Yes / No

4

In case of rejection, application money must be refunded.

5

Pro-rata allotment ensures fair distribution of shares among applicants.

6

Excess application money is always refunded in pro-rata allotment.

7

A shareholder can receive fewer shares than applied in oversubscription.

8

Adjustment of excess money reduces future payment burden of shareholders.

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