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What type of account is share application?

Share Application or share allotment or Share capital A/c all are personal accounts as they represent money from the shareholders and when money is due, these are to be debited because of the rule Debit the receiver. Was this answer helpful?

What is the meaning of application of shares?

An application for shares is an offer by the prospective shareholders to take the shares of the company. Such offers are made on application forms supplied by the company. When an application is accepted, it is called allotment. Allotment is the acceptance by the company of the offer made by the applicant.

What is the application money for shares?

What is Share Application Money? Share application money is the amount of advance received from a prospective shareholder. As per section 39(2), Share Application Money should not be less than 5% of the nominal value of a share or any other amount specified by SEBI.

What are the 3 types of shareholders?

The main types of shareholders are as follows: Common shareholders. Common shareholders are the most prevalent type of shareholders. Preferred shareholders. Partly-paid or contributing shares. Majority shareholders. Minority shareholders. Public or private company. Companys constitution. Shareholders agreement.

What is an application for shares?

An Application for Shares document indicates number of shares and type of shares that an entity is applying for. It also serves as an agreement by that entity to be bounded by the Constitution of the company, and authorising the company to put his/her name in the Member Register.

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