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General Accounting Principles Accounting for Shares

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According to Companies Act, Minimum Subscription has been fixed at ……….. of the issued amount.

25%

50%

90%

100%

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Explanation:

The requirement for minimum subscription is determined through a ceiling limit. At present, the Government of India (GoI) has fixed the ceiling limit as 90% (ninety per cent). The ceiling limit should be applied to the total capital issued by the company. Else, the company shall refund the whole amount received. This 90 % has to be exclusive of the cheques that are not cleared.