Question

Select the correct sequence of accounting events for share capital; A. Receive application money
B. Calls in advance
C. Issue of prospectus
D. Final call of share
E. Allotment of share
Choose the correct answer from the options given below:

• A. C, A, E, B, D
• B. A, C, E, B, D
• C. B, C, A, D, E
• D. C, B, A, E, D

Hint:

Always remember the chronological steps: Prospectus → Application → Allotment → Calls → Final call.

Answer 1

The Correct Option is A

Step 1: Understand the sequence:
% Option (A) C. Issue of Prospectus – Company invites public to apply for shares. % Option (B) A. Receive Application Money – Interested investors apply with payment. % Option (C) E. Allotment of Shares – Shares are allotted to successful applicants. % Option (D) B. Calls in Advance – Shareholders may pay upcoming call(s) early. % Option (E) D. Final Call of Share – Last installment is demanded. Step 2: Sequence from above is: C → A → E → B → D