question_answer

XY Limited issued 2,50,000 equity shares of Rs. 10 each at a premium of Rs. 1 each payable as Rs. 2.5 on application, Rs. 4 on allotment and balance on the first and final call. Applications were received for 5,00,000 equity shares but the company allotted to them only 2,50,000 shares. Excess money was applied towards amount due on allotment. Last call on 500 shares was not received and shares were forfeited after due notice. This is a case of:

A) Oversubscription

B) Pro-rata Allotment

C) Forfeiture of Shares

D) All of the above