Question

It was decided that excess money received on application would be adjusted towards allotment and surplus would be refunded

Answer 1

Hello dear ☺

Here's the answer ⤵

When a company receives applications for a large number of shares than offered to public for subscription, it is said that the issue has been over-subscribed.

Hope it helps ✌

Answer 2

Explanation:

A bank mediates between those who have surplus money and those who need money by allowing both to open accounts with it. Banks only keep about 15% of cash reserves to provide to people who come to withdraw money on a daily basis. Those with surplus money are encouraged to invest with the bank and are paid a certain rate of interest for the same. Those who need loans are required to pay an interest on their loans. The difference between payment to lenders and receipt from borrowers comprises the bank’s earnings. Thus, the bank acts as a beneficiary for those with surplus money as well as those who need money.