Business Studies, asked by KamalDhaliwal1748, 1 year ago

Bhuvan LTD. Issue 5lakh shares of Rs 10 each for public subscription . Application along with money was receibed for 4 lakh share. Can a company allot these shares? Explain.

Answers

Answered by Anonymous
39

The company cannot allot these shares because,

the company did not receive minimum subscription.

minimum subscription = 90%( 5,00,000 shares × 10 rupees each share)

90%( 50,00,000) = Rs.45,00,000

amount received = 4,00,000 shares × 10 rupees each = Rs.40,00,000

amount received is less than minimum subscription

therefore, the company cannot allot the shares.

Answered by arshitarana02
8

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