Calls in Arrears occurs when shareholders fail to pay the amount due on allotment or calls. This is the unpaid amount that remains outstanding -> Matches with (III)
Calls in Advance represents the amount received from shareholders before it is actually due. Shareholders sometimes pay for future calls in advance -> Matches with (IV)
Over Subscription happens when applications received exceed the shares offered. For example, if a company issues 1,00,000 shares but receives applications for 1,50,000 shares, it is oversubscribed by 50,000 shares -> Matches with (I)
Under Subscription arises when applications received are less than shares offered. For example, if a company issues 1,00,000 shares but receives applications for only 80,000 shares, it is undersubscribed by 20,000 shares -> Matches with (II)
The correct matching:
- (A) - (III)
- (B) - (IV)
- (C) - (I)
- (D) - (II)
Correct Answer: Option 4