The solution to Question number 20 of the Accounting for Share Capital chapter of TS Grewal Book 2025-26 Edition


Faber Ltd. Invited applications for 70,000 equity shares of ₹ 100 each. The application money received @ ₹ 30 per share was ₹ 27,00,000. Name the kind of subscription. List the three alternatives for allotting these shares.

[Ans.: Oversubscription.]

Solution:-