A and B are partners sharing profits in the ratio of 3:2. Their balance sheet on 31st March, 2015 stood as under
                                         Balance Sheet
                                   as at 31st March, 2015

Liabilities		Amt (RS)	Assets		Amt (RS)
Capital A/c			Machinery		66,000
A	70,000		Furniture		30,000
B	60,000	1,30,000	Investments		40,000
General Reserve		20,000	Stock		46,000
Bank Loan		18,000	Debtors	38,000
Creditors		72,000	(-) Provision for Doubtful Debts	(4,000)	34,000
			Cash		24,000
		2,40,000			2,40,000

On this date, they admitted C for 25% share in profits on following terms
(i) C brings capital proportionate his share after all adjustments and RS.8,000 for goodwill out of his share of RS.14,000.
(ii) Depreciate furniture by 10%.
(iii) Half of investments were to be taken over by A and B in their profit sharing ratio and remaining valued at RS.26,000
(iv) New ratio will be 3:3:2.
(v) C bring 25% of the combined capital of A and B as capital.
Prepare revaluation account, partners' capitals accounts and balance sheet.

Shikhar and Ranveer are partners in a firm sharing profits and losses in the ratio of 2:1 On 31st March, 2015, their balance sheet was as under. Ranveer became permanently incapable to work. So, the Court ordered for the dissolution of the firm. Shikhar took over investments at an agreed valuation of Rs70,000.  Other assets were realised as follows Sundry debtors: Full amount. The firm could realise stock at 15% less and furniture at 20% less than the book value. building was sold at Rs.2,00,000. Compensation to employees paid by the firm amounted to Rs.20,000. This liability was not provided for in the above balance sheet. you are required to close the books of the firm by preparing realisation account, partners' capital accounts and bank account. Also, identify the value involved.

R,O and M are sharing profits and losses in the ratio 5:3:2 They decide to share future profits and losses in the ratio of 2:3:5 with effect from 1st April ,2015.They also decided to record the effect of following revaluations without affecting the book values of the assets and liabilities,by passing a single adjusting entry.

Particulars	Book figure(Rs)	Revised Figure(Rs)
Land and Building	1,20,000	1,80,000
Plant and macheinery	1,80,000	1,68,000
Trade Creditors	60,000	54,000
Outstanding expenses	54,000	72,000

Identify the value being communicated by the partners.

Under which major sub-headings the following items will be placed in the Balance Sheet of a company as per Schedule III Part I of the Companies Act 2013:
(i)Bonds
(ii)Capital Redemption Reserve
(iii)Short-term Provisions
(iv)Balance of the statement of profit and Loss
(v)Provision for Warranties
(vi)Brand/Trade Marks

Y Ltd. Purchased machinery Rs.55,000 from Z Ltd. 10% was paid by Y Ltd. by accepting a bill of exchange in favour of Z Ltd. and the balance was paid by issue of 9% debentures of Rs.100 each at par, redeemable after five years. Pass necessary journal entries in the books of Y Ltd.

Verma and Sharma were partners sharing profits in the ratio of 3 : 1.  On 31-03-2011 their Balance Sheet was as follows :

                 Balance Sheets of Verma and Sharma

                            as on 31-03-2011

Liabilities		Rs.	Assets	Rs.
Capitals :			Land and Building	70,000
Verma	1,20,000		Machinery	60,000
Sharma	80,000	2,00,000	Debtors	80,000
Creditors		70,000	Bank	60,000
		2,70,000		2,70,000

The firm was dissolved on 1-4-2011 and the Assets and Liabilities were settled as follows:

  (i) Creditors of Rs. 50,000 took over Land and Building in full settlement of their claim.

  (ii) Remaining Creditors were paid in cash.

  (iii) Machinery was sold at a depreciation of 30%.

  (iv) Debtors were collected at a cost of Rs. 500.

  (v) Expenses of realisation were Rs. 1,700.

Pass necessary Journal Entries for dissolution of the firm.

A,B and C were partners in a firm sharing profit in the ratio of 5:3:2. On 1.4.2005 they admitted D as a new partner for 1/8th share in the profits of the firm. The new profit sharing ratio of A,B,C and D will be 3:2:2:1. On D's admission the goodwill of the firm was valued at Rs.2,40,000. D brought in cash Rs.1,75,000 for his share of capital. He also brought necessary cash as premium for his share of goodwill.

Calculate sacrifice/gain of A,B and C on D's admission. Also pass necessary journal entries for the above transactions in the books of the firm. Show your calculations clearly.

A and B were partners sharing profits in the ratio of 3 : 2.  The accountant prepared Profit and Loss Account, Profit and Loss Appropriation Account and Partners' Capital Accounts, but forgot to post few amounts in these accounts.  You are required to complete these below given amounts by posting correct amounts:
                          Profit and Loss A/c
                  for the year ended 31st March, 2015
Dr.                                                                                     Cr.

Particulars		Rs.	Particulars		Rs.
To Interest on A's Loan		900	By Profit for the year		......
		......
	Total	......		Total	......

 

Particulars		Rs.	Particulars		Rs.
To Interest on Capital @ 5% p.a. :			By Profit as per Profit and Loss A/c		.....
A	2,500		By Interest on Drawings A/c :
B	2,000	.....	A	120
To Salary A/c			B	80	200
A	24,000
B	12,000	......
To Divisible Profit transferred to Capital A/cs :
A              3/5	17,280
B              2/5	.......	......
Total		69,300	Total		69,300

Dr.                                              Partners' Capital A/c                                               Cr.

Particulars		A Rs.	B Rs.	Particulars		A Rs.	B Rs.
To Drawings A/c		6,000	4,000	By Balance b/d		.....	.....
To Interest on Drawings A/c		.....	.....	By Interest on Capital A/c		.....	.....
To Balance c/d		.....	.....	By Salary A/c		.....	.....
				By Profit and Loss Appropriation A/c		.....	.....
Total		.....	.....	Total		.....	.....

P, Q and R are partners sharing profits in the ratio of 3 : 2 : 1.  However, R is guaranteed Rs. 20,000 as his share of profits every year.  Deficiency if any would be borne by the other partners.  The profits for the two years ending 31.03.2008 and 31.03.2009 had been Rs. 75,000 and Rs 80,000 respectively.  Show the Profit and Loss Appropriation Account for the two years.

Sharma and Verma were partners in a firm sharing profits in the ratio of 4 : 1.  Their capitals on 01- 04 -2006 were Sharma Rs. 5,00,000 and Verma Rs. 1,00,000.  The partnership deed provided that Sharma will get a commission of 10% on the profit after allowing a salary Rs. 5,000 per month to Verma.  The profit of the firm for the year ended 31st March, 2007 was Rs. 2,80,000.
Prepare Profit and Loss Appropriation Account of Sharma and Verma for the year ended 31.03.2007.

A,T and R were partners in a firm sharing profits in the ratio of 5:6:7 respectively. State the ratio in which the goodwill of the firm amounting to Rs.16,00,000 will be adjusted in the capital accounts of A and T in case of R's death.

The firm of Ravi and Mohan was dissolved on 01.03.2013.  According to the agreement, Ravi had to undertake the dissolution work for an agreed remuneration of Rs, 20,000 and bear all realisation expenses.  Dissolution expenses were Rs. 1,500 and the same were paid by the firm.  Pass necessary journal entries for the payment of dissolution expenses.

State the liability of partners in case of dissolution of firm.

How does the factor " efficiency of management" affect the goodwill of the firm ?

How does the factor 'location' after the goodwill of a firm ?

Why is it that the capital account of a partner does not show a 'Debit Balance' in spite of regular and consistent losses year after year?

A, B and C are partners decided that no interest on drawings is to be charged to any partner.  But after one year 'C' wants that interest on drawings should be charged to every partner.  State how 'C' can do this.

Rochelle and Mandana are partners sharing profits and losses in the ratio of 3:2. Keith is admitted as a partner for 1/5 share. Make entries in the firm's journal, the following adjustments.
(i) The value of buildings increased by RS.2,00,000.
(ii) The landlord has decided to waive the outstanding rent, of RS.5,000 appearing in the books.
(iii) Prepaid insurance RS.2,500 is to be brought into account.
(iv) Investments and investment fluctuation fund appear in the balance sheet at RS.50,000 and RS.5,000 respectively. Presently, the value of investments is RS.42,000.
(v) On 31st December, 2015, goods of RS.20,000 were received by the firm on account of credit purchases. This transaction has not yet been recorded in the books of the firm. (Unrecorded creditors of RS.20,000 and unrecorded stock of RS.20,000).

From the following balance sheet of Aspect Ltd, calculate the current ratio.
                                                Balance Sheet
                                                       as at ...

Particulars	Note No.	Amt(Rs)
I Equity and liabilities
1. Shareholders' Funds
(a) Share Capital		15,00,000
(b) Reserves and Surplus		(1,50,000)
2. Non-current Liabilities
Long-term Borrowings		8,25,000
3. Current Liabilities
(a) Short-term Borrowings		7,50,000
(b) Trade Payables		1,50,000
(c) Short-term Provisions		2,25,000
Total		33,00,000
II Assets
1. Non-current Assets
(a) Fixed Assets
(i) Tangible Assets		13,50,000
(ii) Intangible Assets		1,50,000
(b) Non-current Investments		1,50,000
2. Current Assets
(a) Current Investments		3,00,000
(b) Inventories		4,50,000
(c) Trade Receivables		5,25,000
(d) Cash and Cash Equivalents		3,75,000
Total		33,00,000

From the following information, calculate net cash flow from operating activities and investing activities.

Particulars	31st March, 2014 (Rs.)	31st March 2015 (Rs.)
Profit and Loss A/c	60,000	2,40,000
Provision for Tax	30,000	30,000
Trade Payables	24,000	90,000
Non-curent Investments	60,000	48,000
Current Assets(Inventories and trade receivables)	2,76,000	3,12,000

Additional Information
Tax paid during the year was Rs.18,000.At the end of the year, some investments costingRs.42,000 were sold at a loss of 30%.

Asha and Nisha are partners sharing profits in the ratio of 2:1. Asha's son Ashish was admitted for 1/4th share, of which 1/8th was gifted by Asha to her son. The remaining was contributed by Nisha. Goodwill of the firm is valued at RS.40,000. How much of the goodwill will be credited to the old partner's capital accounts?  

Archie,Betty and Veronica are partners sharing profits in the ratio of 3:2:1 With effect from 1st April 2015 they decide to share profits in the ratio of 2:2:1 Their balance sheet as at 31st March,2015 

Liabilities		Amt(Rs)	Assets	Amt (Rs)
Creditors		1,00,000	Cash	62,000
Outstanding Expenses		12,000	Debtors	50,000
Capital A/cs			Stock	75,000
Archie	3,75,000		Plant and macheinery	3,25,000
Betty	2,25,000		Land and building	4,00,000
Vernoica	2,00,0000	8,00,000
		9,12,000		9,12,000

For the above purpose ,it was agreed that
(a) Plant and machinery should be written down by Rs 25,000.
(b)Stock is found overvalued by 10% It was decided to reduce its value accordingly
(c)Land and building has to be appreciated by 25%.(d)Creditors amounting to be Rs 5,500 are not likely to claim their amount.
(d)Creditors amounting to Rs 5,500 are not likely to claim their account.
(e) Goodwill at the time of reconstitution, is to be valued at 3 years purchase of average profits of last five years,which were Rs 22,500.
You are required to give effect to the above adjustments.
(i) By opening revaluation account         
(ii) By passing a single adjustment entry

The profit of X Ltd. was Rs. 1,00,000 after considering the following items :
(a) Depreciation provided on Fixed Tangible Assets Rs. 20,000
(b) Patents written off Rs. 10,000
(c) Loss on sale of Furniture Rs. 1,000
(d) Provision for Taxation Rs. 1,60,000
(e) Transfer to General Reserve Rs. 14,000
(f) Profit on sale of Fixed Tangible Assets (Machinery) Rs. 6,000.
The following additional information is available to you:

Items	31.03.2014 Rs.	31.03.2015 Rs.
Trade Receivables	44,000	47,000
Trade payables	36,000	42,000
Prepaid Expenses	400	600

Calculate cash flows from operating activities.

A and B have been in business together for the last three years ending 31st March, 2015 at which date, they agreed to dissolve.  Their capital at the commencement of the three years before allowing 10% interest on capital were : 2012-13(profit) Rs.30,000, 2013-14 (profit) Rs. 22,200 and 2014-15 (loss) Rs. 5,380.  Drawings of each partner is Rs. 4,000 per year.  Creditors on the date of dissolution were Rs. 16,400.  The assets realised Rs. 85,000.  Expenses of dissolution amounted to Rs. 780.

Prepare (i) Capital Accounts before and after dissolution, (ii) Balance Sheet as on 31st March 2015, (iii) Bank A/c and (iv) Realisation Account.

X, Y and Z were partners sharing profits in the ratio 3:2:1. On 31st March, 2008, their Balance Sheet stood as under:

Liabilities		RS	Assets	RS
Capitals:			Cash at Bank	70,000
X	75,000		Investments	50,000
Y	70,000		Patents	15,000
Z	50,000	1,95,000	Stock	25,000
Creditors		72,000	Debtors	20,000
General Reserves		50,000	Buildings	75,000
			Machinery	36,000
		2,91,000		2,91,000

(a) Goodwill was valued at 3 years' purchase of the average profits of the last five years, which were, 2003: RS.40,000;2004: RS.40,000; 2005: RS.30,000;2006 : RS.40,000 and 2007: 50,000.Z died on May 31^st2008. It was agreed that:

(b) Machinery was valued at RS.70,000, Patents at RS.20,000 and Buildings at RS.66,000.

(c) For the purpose of calculating Z's share of profits till the date of death, it was agreed that the same be calculated based on the average profits of the last 2 years.

(d) The executor of the deceased partner is to be paid the entire amount due by means of a cheque.

Prepare Z's Capital Account to be rendered to the executor and also a Journal Entry for the settlement of the amount due to Z's executors.

Nonu and Monu are partners in a firm sharing profits and losses in the ratio of 3:2 with capitals of RS.2,40,000 and RS.1,60,000 respectively. The amount of capital carries interest @ 10% per annum. They admit Sonu into the partnership with effect from 1st January, 2015 on the following terms
(i) Sonu is to bring in RS.20,000 for his share of goodwill in cash.
(ii) Sonu is to contribute RS.2,50,000 as his share of capital.
(iii) The partners' capitals will carry interest @ 12% per annum.
(iv) The new profit sharing ratio of Nonu, Monu and Sonu will be 9:6:4.
(v) Nonu will be entitled to 5% commission on net profit.
(vi) The profits for the year ending on 31st March, 2015 before providing for Nonu's commission and interest on partners' capitals amounted to RS.1,60,000.
Prepare profit and loss appropriation account for the year ending on 31st March, 2015.

Following is the balance is the sheet of Honest, Smart and Quick as on 31st March, 2015, who share profits in the ratio of 3:2:1

                      Balance Sheet
                   as at 31st march 2015

Liabilities		Amt(Rs)	Assets	Amt(Rs)
Capital A/cs			Stock	1,25,000
Honest	2,50,000		Debtors	1,00,000
Smart	1,50,000		Buildings	1,50,000
Quick	1,00,000	5,00,000	Machinery	1,80,000
Creditors		1,00,000	Vehicles	50,000
Bills Payable		20,000	Profit and Loss A/c	75,000
General Reserve		60,000
		6,80,000		6,80,000

On the above date, Honest retired and the following arrangements were agreed upon.
(i)Goodwill of the firm is to be valued at Rs.1,50,000
(ii)The assets and liabilities are to be valued as under
Stock         Rs.1,00,000
Debtors      Rs.95,000
Buildings    Rs.1,80,000
Machinery  Rs.1,65,000
Creditors    Rs.97,000
(iii)Smart and Quick were to introduce Rs.1,20,000  and Rs.60,000 respectively into the business and Rs.1,31,500 were paid to Honest.The balance due to him was to be paid in three equal instalments annually with interest @10% per annum.

Rishant Ltd was formed with a nominal capital of Rs 3,00,000 divided into 6,000 shares of Rs 50 each. 2,000 shares were issued as fully paid to the vendors for purchase consideration. 2,000 shares were offered for public subscription at a premium of Rs 5 per share payable as

On application Rs 15,

On allotment Rs 15 (including premium),

On first call Rs 10 and on final call Rs 15.

Applications were received for 1,950 shares were dully allotted. A holder of 200 shares failed to pay the first call money and his shares were forfeited. These shares were re-issued @ Rs 35 per share paid-up. Final call has not been made.

Give necessary journal entries and also show the share capital account in the balance sheet of the company.

Himalaya Company Limited issued for public subscription of 1,20,000 equity shares of Rs 10 each at a premium of Rs 2 per share payable as under :

With Application	Rs 3 per share
On allotment (including premium)	Rs 5 per share
On First call	Rs 2 per share
On Second and Final call	Rs 2 per share

Applications were received for 1,60,000 shares. Allotment was made on pro-rata basis. Excess money on application was adjusted against the amount due on allotment.
Rohan, whom 4,800 shares were allotted, failed to pay for the two calls. These shares were subsequently forfeited after the second call was made. All the shares forfeited were reissued to Teena as fully paid at Rs 7 per share.
Record journal entries in the books of the company to record these transactions relating to share capital. Also show the company’s balance sheet.

X, Y and Z were partneRs. sharing profits in the ratio of 2:2:1. The Balance sheet on 31st march, 2015, when they dissolved the firm was as follows

                                                                           Balance Sheet

                                                                      as at 31st March, 2015

Liabilities		Amt(Rs.)	Assets		Amt(Rs.)
Capital A/cs			Other Sundry Assets		1,17,000
X	1,27,500		Furniture		11,000
Y	1,10,000		DebtoRs.	1,24,000
Z	17,000	2,54,500	(-)Provision for Doubtful Debts	(1,200)	1,23,000
Loan		11,500	Stock		17,800
CreditoRs.		16,000	Cash		13,200
		2,82,000			2,82,000

It was agreed that

(i) X to take over furniture at Rs.8,000 and debtoRs. amounting to Rs. 1,20,000 at 1,17,200 and the creditoRs. of Rs.16,000 were to be paid by him at this figure.
(ii) Y is to take over all stock for Rs.17,000 and some sundry assets at Rs.72,000(being 10% less than the book value).
(iii) Z to take over remaining sundry assets at 80% of the book value and assume the responsibility of discharge of loan together with accured interest of Rs.2,300.
(iv) The expenses of realisation were Rs. 2,700. The remaining debtoRs. were sold to a debt collecting agency at 50% of the value.
Prepare necessary accounts to close the books of the firm.

Sita, Reeta and Geeta are partners in firm sharing profits and losses in the ratio of 4:3:1. As per the terms of partnership deed, on the death of any partner, goodwill was to be valued at 5% of the net profits credited to that partners' capital account during the last three completed years before her death. Sita died on 28th February 2015.The profits for the last five years were: 2010 Rs.60,000, 2011 Rs.97,000, 2012 Rs.1,05,000, 2013 Rs.84,000.
On the date of Sita's death, building was found undervalued by Rs.80,000, which was to be considered. Calculate amount of Sita's share of Goodwill in the firm and record the adjustment journal entries of goodwill and revaluation of building. The new profit sharing ratio between Reeta and Geeta will be equal.

Pankaj, Naresh and Saurabh are partners sharing profits in the ratio of 3:2:1.Naresh retired from the firm due to his illness.On that date, the balance sheet of the firm was as follows

Books of Pankaj, Naresh and Saurabh Balance Sheet as on September 30, 2017

Liabilities		Amt(Rs)	Assets		Amt(Rs)
General Reserve		12,000	Bank		7,600
Sundry Creditors		15,000	Debtors	6,00
Bills Payable		12,000	(-)Provision for Doubtful Debts	(400)	5,600
Outstanding salary		2,200	Stock		9,000
Provision for Legal Damages		6,000	Furniture		41,000
Capital A/cs			Premises		80,000
Pankaj	46,000
Naresh	30,000
Saurabh	20,000	96,000
		1,43,200			1,43,200

Additional Information
(i) Premises have appreciated by 20%, Stock depreciated by 10% and provision for doubtful debts was to be made at 5% on debtors.Further, provision for legal damages is to be made for Rs.1,200 and furniture is to be through up to Rs.45,000.
(ii) Goodwill of the firm be valued at Rs.42,000
(iii) Rs.26,000 from Naresh's capital account be transferred to his loan account and balance be paid through bank,; if required, necessary loan may be obtained from bank.
(iv) Naresh share of profit till the date of retirement is to be calculated on the basis of last years’ profit, i.e., Rs. 60,000.
(v) New profit sharing ratio of Pankaj and Saurabh is decided to be 5:1
Give the necessary ledger accounts, the balance sheet of the firm after Naresh's retirement.

Soumya and Bimal are partners in a firm sharing profits and losses in the ratio of 3:2. the balances in their capital and current accounts as on 1st April, 2017 were as under

Item	Soumya(Rs)	Bimal(Rs)
Capital accounts	3,00,000	2,00,000
Current accounts(Cr)	1,00,000	80,000

the partnership deed provides that Soumya is to be paid salary @Rs.500 per month whereas, Bimal is to get a commission of Rs.40,000 for the Year were Rs.30,000 and Rs.10,000, respectively. the net profit of the firm before making these adjustments was Rs.2,49,000. Interest on Soumya's drawing was Rs.750 and Bimal's drawings was Rs.250 prepare profit and loss appropriation account and partner's capital and current accounts.

P,Q and R who are presently sharing profits and losses in the ratio of 5:3:2 decide to share future profits and losses in the ratio of 2:3:5 with effect from 1st April,2015.An extract of their balance sheet as at 31st March,2015 is as follows.
                                         Balance Sheet (Extract)
                                         as at 31st March,2015

Liabilities	Amt (Rs)	Assets	Amt (rs)
Sundry Creditors	6,00,000	Land and Building	5,00,000
Outstanding Rent	20,000	Plant and Machinery	2,00,000
		Stock	1,60,000
		Debtors                                                                                    6,00,000 (-) Provision for Doubtful Debts                                                  (20,000)	5,80,000

It is decided that
(i) Land and building be valued at Rs 5,70,000.
(ii) Plant and machinery be depreciated by 15%
(iii) Stock is found overvalued by Rs 76,000
(iv) Provision  for doubtful debts is to be made equal to 5% of the debtors.
(v)An item of Rs 60,000 included in sundry creditors is not likely to be claimed.
(vi)Rent of Rs 8,000 is still outstanding.
(vii) Out of the amount of insurance which was debited entirely to profit and loss account Rs 10,000 be carried forward as an unexpired insurance.
(viii)Out of total commission received,Rs 6,000 is to be treated as advance commission.This amount was earlier credited to profit and loss account.
(ix) An unaccounted accured income of Rs 2,000 be provided for.
(x) A debtor whose dues of rs 10,000 were written -off as bad debts paid 80% in full settlement.
Pass the necessary journal entries and prepare revaluation account.

R and T are partners in a firm sharing profits in the ratio of 3:2. S joins the firm. R surrenders \(\frac { 1 }{ 4 } \) th of his share and T surrenders  \(\frac { 1 }{ 5 } \) th of his share in favour of S. Find the new profit sharing ratio and the sacrificing ratio.

A and B were partners in a firm sharing profits in 3:1 ratio. They admitted C as a partner for 1/4th Share in the profit C was to bring Rs.60,000 for his capital. The Balance Sheet of A and B on 1.4.2014, the date on which C was admitted was as follows:

Liabilities		Rs	Assets		Rs
Creditors		70,000	Land and Bildings		40,000
Capitals:			Plant and Machinery		70,000
A	50,000		Stock		30,000
B	80,000	1,30,000	Debters	35,000
General Reserve		10,000	Less:Provision for Double Debts	(1,000)	34,000
			Investments		26,000
			Cash		10,000
		2,10,000			2,10,000

 

The other terms agreed upon were:

(i)Goodwill of the firm was valued at Rs.24,000

(ii)Land and Buildings were valued at Rs.65,000 and Plant and Machinery at Rs.60,000

(iii)Provision for bad and doubtful debts was found in excess by Rs.400.

(iv)A liability of Rs.1,200 included in sundry Creditors was not likely to arise.

(v)The capitals of the partners be adjusted on the basis of C's contribution of capital to the firm.

(vi)Excess or shortfall if any to be transferred to current Accounts.

Prepare Revaluation Account,Partners' Capital Accounts and the Balance Sheet of the new firm.

A business has a current ratio of 3:1. Its networking capital is Rs.4,00,000 and its stocks are valued at Rs.2,50,000. Calculate the quick ratio. Is it satisfactory? Identify the value shown by the company in maintaining such a quick ratio

What is meant by Common-size Statement of Profit and Loss'?

Why is the management interested in analysing financial statements ?

Name any two items which are shown under the heading 'Shareholders' Funds'.

State the condition under which a company can refund the applications amount in the event of undersubscription.

What is meant by public subscription of shares?