Question
Accountancy Question on Accounting for Share and Debenture Capital
Oversubscription is a situation where the
A
Number of shares applied for is equal to the number of shares issued
B
Number of shares applied for is more than the number of shares issued
C
Number of shares applied for is less than the number of shares issued
D
Face value of the share is less than the issue price of the share
Answer
Number of shares applied for is more than the number of shares issued
Explanation
Solution
Oversubscription occurs when the number of shares applied for exceeds the number of shares issued.
Hence, the correct answer is Option 2.