Which account represents excess proceeds received and retained by a company from an oversubscription to a share offer application?
A) Calls in advance account.
B) Share issue costs account.
C) Forfeited shares account.
D) Share capital account.

Question

Quizplus · Accepted Answer

Calls in advance account represents the excess funds received by a company over the share capital amount when there is an oversubscription to a share offer. These funds are held until they can be either returned to the subscribers or appropriated in a manner decided by the company.

Which Account Represents Excess Proceeds Received and Retained by a Company