12th Class Accountancy Accounting For Share Capital Question Bank

done MCQs - Accounting for Share Capital Total Questions - 100

• question_answer1)
  Which of the following statements does not relate to 'Reserve Capital'?        (CBSE 2020)
  A)
  It is part of uncalled capital of a company done clear
  B)
  It cannot be used during the lifetime of a company done clear
  C)
  It can be used for writing-off capital losses done clear
  D)
  It is part of subscribed capital done clear
  View Solution play_arrow

• question_answer2)
  Nominal share capital is:             (CBSE 2020)
  A)
  that part of authorised capital which is issued by the company     done clear
  B)
  the amount of capital which is actually applied by prospective shareholders done clear
  C)
  the amount of capital which is paid by the shareholders done clear
  D)
  the maximum amount of share capital that a company is authorised to issue done clear
  View Solution play_arrow

• question_answer3)
  Pragya Ltd. forfeited 8,000 equity shares of Rs. 100 each issued at a premium of 10% for non-payment of first and final call of Rs. 30 per share. The maximum amount of discount at which these shares can be reissued will be:           (CBSE 2020)
  A)
  Rs. 80,000                                 done clear
  B)
  Rs. 3,20,000 done clear
  C)
  Rs. 5,60,000                              done clear
  D)
  Rs. 2,40,000 done clear
  View Solution play_arrow

• question_answer4)
  The Directors of Axim Ltd. forfeited 20,000 equity shares of Rs. 10 each, Rs. 8 per share called-up for non-payment of Rs. 2 per share. Final call of Rs. 2 per share has not been yet called Half of the forfeited shares were reissued as fully paid-up for Rs.15 per share. The amount transferred to capital reserve will be:      (CBSE 2020)
  A)
  Rs. 2,00,000        done clear
  B)
  Rs. 1,20,000 done clear
  C)
  Rs. 60,000           done clear
  D)
  Rs. 40,000   done clear
  View Solution play_arrow

• question_answer5)
  Subscribed capital is:                          (CBSE 2020)
  A)
  that part of authorised capital which is issued to the public for subscription                                          done clear
  B)
  that part of issued capital which has c=en actually subscribed by the public done clear
  C)
  that part of subscribed capital which has not yet been called-up the shares done clear
  D)
  that part of subscribed capital which has not yet been called-up on the shares done clear
  View Solution play_arrow

• question_answer6)
  Excess value of net assets over purchase consideration at the time of purchase of business is:                   (CBSE 2020)
  A)
  credited to capital reserve done clear
  B)
  debited to goodwill account done clear
  C)
  credited to the general reserve account done clear
  D)
  credited to vendor's account   done clear
  View Solution play_arrow

• question_answer7)
  First call amount received in advance from the shareholders before it is actually called-up by the director is     (CBSE 2020)
  A)
  debited to calls-in-advance account done clear
  B)
  credited to share allotment account done clear
  C)
  debited to first call account done clear
  D)
  credited to calls-in-advance account done clear
  View Solution play_arrow

• question_answer8)
  Which of the following is not a purpose for which the securities premium amount can be used?   (CBSE 2020)            
  A)
  Issuing fully paid bonus to shareholders done clear
  B)
  Issuing partly paid bonus shares to shareholders done clear
  C)
  Writing-off preliminary expenses of the company done clear
  D)
  By purchasing its own shares (Buy-back) done clear
  View Solution play_arrow

• question_answer9)
  700 shares of Rs.10 each were reissued as Rs. 9 paid up for Rs. 7 per share. Entry for reissue will be:
  A)
   

  Bank A/c	Dr.	4,900
  Share Discount A/c	Dr.	1,400
  To Share Capital A/c			6,300

    done clear
  B)

  Bank A/c	Dr.	4,900
  To Share Capital A/c			4,900

    done clear
  C)
   

  Bank A/c	Dr.	4,900
  Share Forfeiture A/c	Dr.	1,400
  To Share Capital A/c			6,300

    done clear
  D)
   

  Bank A/c	Dr.	4,900
  Share Discount A/c	Dr.	2,100
  To Share Capital A/c			7,000

    done clear
  View Solution play_arrow

• question_answer10)
  If discount on reissue of shares is less than the amount forfeited, surplus is transferred to:
  A)
  Capital Reserve   done clear
  B)
  General Reserve done clear
  C)
  Securities Premium Reserve done clear
  D)
  Statement of Profit & Loss done clear
  View Solution play_arrow

• question_answer11)
  Maximum number of members in a private company is:
  A)
  7                                              done clear
  B)
  200       done clear
  C)
  20                                             done clear
  D)
  No Limit done clear
  View Solution play_arrow

• question_answer12)
    To whom dividend is given at a fixed rate in a company?
  A)
  To equity shareholders done clear
  B)
  To preference shareholders done clear
  C)
  To debentureholders       done clear
  D)
  To promoters done clear
  View Solution play_arrow

• question_answer13)
  Shareholders are:
  A)
  customers of the company done clear
  B)
  owners of the company done clear
  C)
  creditors of the company done clear
  D)
  None of the above done clear
  View Solution play_arrow

• question_answer14)
  In the balance sheet of a company, under the heading share capital, at the Last is shown:
  A)
  authorised share capital    done clear
  B)
  subscribed share capital done clear
  C)
  issued share capital        done clear
  D)
  reserve share capital done clear
  View Solution play_arrow

• question_answer15)
  A company cannot issue:
  A)
  redeemable equity shares done clear
  B)
  redeemable preference shares done clear
  C)
  redeemable debentures done clear
  D)
  fully convertible debentures   done clear
  View Solution play_arrow

• question_answer16)
  In case of private placement of shares and company does not invite the general public for subscription of shares in that case, company instead of issuing prospectus:
  A)
  prepares the statement in lieu of prospectus done clear
  B)
  prepares the report done clear
  C)
  prepares the budget done clear
  D)
  prepares the asset side of balance sheet   done clear
  View Solution play_arrow

• question_answer17)
  Which of the following statements is true?
  A)
  Authorised Capital = Issued Capital done clear
  B)
  Authorised Capital > Issued Capital done clear
  C)
  Paid-up Capital > Issued Capital done clear
  D)
  None of the above done clear
  View Solution play_arrow

• question_answer18)
  A company is created by:
  A)
  Special act of the Parliament done clear
  B)
  Companies Act done clear
  C)
  Investors done clear
  D)
  Members done clear
  View Solution play_arrow

• question_answer19)
  Equity shares cannot be issued for the purpose of:
  A)
  Cash Receipts done clear
  B)
  Purchase of assets done clear
  C)
  Redemption of debentures done clear
  D)
  Distribution of dividend done clear
  View Solution play_arrow

• question_answer20)
  A company has..........
  A)
  separate legal entity done clear
  B)
  perpetual existence done clear
  C)
  limited liability             done clear
  D)
  All of these done clear
  View Solution play_arrow

• question_answer21)
  Which of the following is not shown under the heading 'Share Capital' in a balance sheet?
  A)
  Subscribed Capital done clear
  B)
  Issued Capital done clear
  C)
  Reserve Capital            done clear
  D)
  Authorised Capital done clear
  View Solution play_arrow

• question_answer22)
  In case of private placement of shares, to raise the amount of capital a company:
  A)
  invites the public through prospectus done clear
  B)
  does not invite the public done clear
  C)
  invites the public through advertisement done clear
  D)
  invites the public through Memorandum of Association done clear
  View Solution play_arrow

• question_answer23)
  Who are the real owners of a company?
  A)
  Government                               done clear
  B)
  Board of Directors done clear
  C)
  Equity shareholders done clear
  D)
  Debenture holders done clear
  View Solution play_arrow

• question_answer24)
  A company may issue..........
  A)
  Equity Shares      done clear
  B)
  Preference Shares done clear
  C)
  Both [a] and [b]    done clear
  D)
  None of these   done clear
  View Solution play_arrow

• question_answer25)
  Reserve capital is:
  A)
  Subscribed Capital done clear
  B)
  Capital Reserve done clear
  C)
  Uncalled Capital done clear
  D)
  Part of the uncalled capital which may be called only at the time of liquidation of the company done clear
  View Solution play_arrow

• question_answer26)
  Reserve capital is a part of:
  A)
  Paid-up Capital done clear
  B)
  Forfeited Share Capital done clear
  C)
  Assets done clear
  D)
  Capital to be called-up only on liquidation of company done clear
  View Solution play_arrow

• question_answer27)
  The Liability of members in a company is:
  A)
  limited                done clear
  B)
  unlimited done clear
  C)
  stable                  done clear
  D)
  fluctuating done clear
  View Solution play_arrow

• question_answer28)
  Preference shareholders have:
  A)
  preferential right as to dividend only done clear
  B)
  preferential right in the management done clear
  C)
  preferential right as to repayment of capital at the time of liquidation of the company done clear
  D)
  preferential right as to dividend and repayment of capital at the time of liquidation of the company done clear
  View Solution play_arrow

• question_answer29)
  A company may issue the shares:
  A)
  by private placement of shares done clear
  B)
  by public subscription of shares done clear
  C)
  for consideration other than cash done clear
  D)
  All of the above done clear
  View Solution play_arrow

• question_answer30)
  In case of private placement of shares, the lock in period is:
  A)
  one year              done clear
  B)
  two years done clear
  C)
  three years          done clear
  D)
  None of these done clear
  View Solution play_arrow

• question_answer31)
  Liability of a shareholder is limited to ......... of the shares allotted to him.
  A)
  paid up value done clear
  B)
  called up value done clear
  C)
  face value            done clear
  D)
  reserve price done clear
  View Solution play_arrow

• question_answer32)
  Capital of a company is divided in units which is called:
  A)
  Debenture           done clear
  B)
  Share done clear
  C)
  Stock                  done clear
  D)
  Bond done clear
  View Solution play_arrow

• question_answer33)
  Authorised capital of a company is mentioned in:
  A)
  Memorandum of Association done clear
  B)
  Articles of Association done clear
  C)
  Prospectus done clear
  D)
  Statement in lieu of Prospectus done clear
  View Solution play_arrow

• question_answer34)
  The snares on which there is no any pre-fixed rate of dividend is decided, but the rate of dividend is fluctuating every year according to the availability of profits, such share are called:
  A)
  Equity Share done clear
  B)
  Non- Cumulative Preference Share done clear
  C)
  Nor- convertible Preference Share done clear
  D)
  Non-guaranteed Preference Share done clear
  View Solution play_arrow

• question_answer35)
  Shares issued by a company to its employees or directors in consideration of 'Intellectual Property Rights' are called:
  A)
  Right Equity Shares done clear
  B)
  Private Equity Shares done clear
  C)
  Sweat Equity Shares done clear
  D)
  Bonus Equity Shares done clear
  View Solution play_arrow

• question_answer36)
  Public subscription of shares include:
  A)
  to issue prospectus done clear
  B)
  to receive applications done clear
  C)
  to make allotment done clear
  D)
  All of these done clear
  View Solution play_arrow

• question_answer37)
  Unless otherwise stated, a preference share is always deemed to be:
  A)
  cumulative, participating and non-convertible done clear
  B)
  non-cumulative, non-participating and non-convertible done clear
  C)
  cumulative, non-participating and non-convertible done clear
  D)
  non-cumulative, participating and non-convertible done clear
  View Solution play_arrow

• question_answer38)
  Preference shares, in case the holders of these have a right to convert their preference shares into equity shares at their option according to the terms of issue, such shares are called:
  A)
  Cumulative Preference Shares done clear
  B)
  Non-cumulative Preference Shares done clear
  C)
  Convertible Preference Shares done clear
  D)
  Non-convertible Preference Shares done clear
  View Solution play_arrow

• question_answer39)
  Amount of securities premium can be utilised for:
  A)
  writing-off the preliminary expenses of the company done clear
  B)
  issuing bonus shares to the shareholders of the company done clear
  C)
  buy-back of its own shares done clear
  D)
  All of the above done clear
  View Solution play_arrow

• question_answer40)
  An artificial person created by Law is called:
  A)
  Sole Tradership   done clear
  B)
  Partnership Firm done clear
  C)
  Company            done clear
  D)
  All of these done clear
  View Solution play_arrow

• question_answer41)
  A preference share which does not carry the right of sharing in surplus profits is called..........
  A)
  Non-cumulative Preference Share done clear
  B)
  Non-participating Preference Share done clear
  C)
  Irredeemable Preference Share done clear
  D)
  Non-convertible Preference Share done clear
  View Solution play_arrow

• question_answer42)
  The portion of the capital which can be called-up only on the winding up of the company is called..........
  A)
  Authorised Capital done clear
  B)
  Called up Capital done clear
  C)
  Uncalled Capital  done clear
  D)
  Reserve Capital done clear
  View Solution play_arrow

• question_answer43)
  As per Table F, the company is required to pay......... interest on the amount of calls-in-advance.
  A)
  12% p.a.              done clear
  B)
  5% p.a. done clear
  C)
  10% p.a.              done clear
  D)
  6% p.a. done clear
  View Solution play_arrow

• question_answer44)
  Premium on the issue of shares should be shown:
  A)
  on the assets side of balance sheet done clear
  B)
  on the equity and liabilities side of balance sheet done clear
  C)
  in profit & loss statement done clear
  D)
  None of the above done clear
  View Solution play_arrow

• question_answer45)
  Shareholders receive from the company:
  A)
  Interest               done clear
  B)
  Commission done clear
  C)
  Profit                  done clear
  D)
  Dividend done clear
  View Solution play_arrow

• question_answer46)
  From which account, expenses on issue of shares will be written off first of all:
  A)
  Statement of Profit and Loss done clear
  B)
  Miscellaneous Expenditure Account done clear
  C)
  Share Issue Expenses Account done clear
  D)
  Securities Premium Reserve Account done clear
  View Solution play_arrow

• question_answer47)
  Which shareholders have a right to receive the arrears of dividend from future profits?
  A)
  Redeemable Preference Shares done clear
  B)
  Participating Preference Shares done clear
  C)
  Cumulative Preference Shares done clear
  D)
  Non-cumulative Preference Shares done clear
  View Solution play_arrow

• question_answer48)
  Capital included in the total of balance sheet of a company is called:
  A)
  Issued Capital done clear
  B)
  Subscribed Capital done clear
  C)
  Called-up Capital done clear
  D)
  Authorised Capital done clear
  View Solution play_arrow

• question_answer49)
  Amount of calls-in-advance is:
  A)
  added to share capital done clear
  B)
  deducted from share capital done clear
  C)
  shown on the assets side done clear
  D)
  shown on the equity & liabilities side done clear
  View Solution play_arrow

• question_answer50)
  Which shareholders are returned their capital after some specified time?
  A)
  Redeemable Preference Shares done clear
  B)
  Irredeemable Preference Shares done clear
  C)
  Cumulative Preference Shares done clear
  D)
  Participating Preference Shares done clear
  View Solution play_arrow

• question_answer51)
  For what purpose securities premium reserve account cannot be utilised?
  A)
  Amortisation of preliminary expenses done clear
  B)
  Distribution of dividend done clear
  C)
  Issue of fully paid bonus shares done clear
  D)
  Buy-back of own shares done clear
  View Solution play_arrow

• question_answer52)
  ......... is transferred to capital reserve.
  A)
  Profit from sale of fixed assets done clear
  B)
  Premium on issue of shares done clear
  C)
  Profit on forfeiture of shares done clear
  D)
  All of the above done clear
  View Solution play_arrow

• question_answer53)
  Pro-rata allotment of shares is made when there is:
  A)
  undersubscription done clear
  B)
  oversubscription done clear
  C)
  equal subscription done clear
  D)
  as and when desired by directors done clear
  View Solution play_arrow

• question_answer54)
  A company issued 50,000 shares of Rs. 20 each at 5% premium, Rs. 10 were payable on application and balance on allotment. What will be the allotment amount?
  A)
  Rs. 5,00,000                              done clear
  B)
  Rs. 4,75,000 done clear
  C)
  Rs. 5,50,000                              done clear
  D)
  Rs. 5,25,000   done clear
  View Solution play_arrow

• question_answer55)
  The following statements apply to equity/preference shareholders. Which one of them applies only to preference shareholders?
  A)
  Shareholders risk the loss of investment done clear
  B)
  Shareholders bear the risk of no dividends in the event of losses done clear
  C)
  Shareholders usually have the right to vote done clear
  D)
  Dividends are usually given at a set amount in every financial year done clear
  View Solution play_arrow

• question_answer56)
  Reserve capital is also known as:
  A)
  Capital Reserve   done clear
  B)
  Called-up Capital done clear
  C)
  Subscribed Capital done clear
  D)
  None of these done clear
  View Solution play_arrow

• question_answer57)
  A company purchased a building for Rs. 3,60,000 and issued as payment equity shares at 20% premium. Journal entry will be:
  A)

  Building A/c                 Dr.	4,00,000
  To Share Capital A/c		3,20,000
  To Securities Premium Reserve A/c		80,000

    done clear
  B)

  Share Capital A/c           Dr.	4,00,000
  To Building A/c		3,60,000
  To Securities Premium Reserve A/c		40,000

    done clear
  C)

  Building A/c                 Dr.	3,60,000
  To Share Capital A/c		3,00,000
  To Securities Premium Reserve A/c		60,000

    done clear
  D)

  Building A/c                 Dr.	3,60,000
  To Share Capital A/c		60,000
  To Securities Premium Reserve A/c		3,00,000

    done clear
  View Solution play_arrow

• question_answer58)
  Interest on calls-in-arrears is charged according to Table F at:
  A)
  6% p.a.                                     done clear
  B)
  10% p.a.     done clear
  C)
  5% p.a.                                     done clear
  D)
  12% p.a. done clear
  View Solution play_arrow

• question_answer59)
  Amount of calls-in-arrears is shown in the balance sheet:   
  A)
  as deduction from issued capital done clear
  B)
  as deduction from subscribed capital done clear
  C)
  as addition to subscribed capital done clear
  D)
  on the assets side done clear
  View Solution play_arrow

• question_answer60)
  Which of the following will define, when appropriation of a certain number of shares is made to an applicant in response to his application?
  A)
  Share Allotment   done clear
  B)
  Share Forfeiture done clear
  C)
  Share Trading      done clear
  D)
  Share Purchase   done clear
  View Solution play_arrow

• question_answer61)
  4,000 equity shares of Rs. 10 each were issued at 8% premium to the promoters of a company for their services. Which account will be debited?
  A)
  Share Capital done clear
  B)
  Goodwill Account/Incorporation Cost Account done clear
  C)
  Securities Premium Reserve Account done clear
  D)
  Cash Account done clear
  View Solution play_arrow

• question_answer62)
  When shares are forfeited, share capital account is debited with:
  A)
  nominal (face) value of shares done clear
  B)
  called-up share capital done clear
  C)
  paid-up value of shares done clear
  D)
  market value of shares done clear
  View Solution play_arrow

• question_answer63)
  If vendors are issued fully paid shares of Rs. 1,25,000 in consideration of net assets of Rs. 1,50,000, the balance of Rs. 25,000 will be credited to:
  A)
  Statement of Profit & Loss done clear
  B)
  Goodwill Account done clear
  C)
  Security Premium Reserve Account done clear
  D)
  Capital Reserve Account                                 done clear
  View Solution play_arrow

• question_answer64)
  Issue of shares at a price lower than its face value is called: 
  A)
  Issue at a Loss     done clear
  B)
  Issue at a profit     done clear
  C)
  Issue at a Discount done clear
  D)
  Issue at a Premium        done clear
  View Solution play_arrow

• question_answer65)
  As per SEBI guidelines, application money should not be less than......... of the issue price of each share.
  A)
  10%                  done clear
  B)
  15% done clear
  C)
  25%                 done clear
  D)
  50% done clear
  View Solution play_arrow

• question_answer66)
  A company has issued 10,000 equity shares of Rs. 10 each and it has called the total nominal (face) value. It has received the total amount, except the final call of Rs. 3 on 500 equity shares. These 500 equity shares will be shown as:
  A)
  Subscribed and fully paid-up done clear
  B)
  Subscribed but not fully paid-up done clear
  C)
  Issued share capital done clear
  D)
  None of the above done clear
  View Solution play_arrow

• question_answer67)
  Star Ltd. issued 10,000 equity shares of Rs. 100 each at a premium of 20%. Mamta, who has been allotted 2,000 shares did not pay first and final call of Rs. 5 per share. On forfeiture of Manila's shares, amount debited to securities premium reserve account will be:
  A)
  Rs. 5,000                                   done clear
  B)
  Rs. 10,000  done clear
  C)
  Rs. 15,000                                 done clear
  D)
  Nil done clear
  View Solution play_arrow

• question_answer68)
  Persons who start a company are called:
  A)
  Shareholders       done clear
  B)
  Directors done clear
  C)
  Promoters           done clear
  D)
  Auditors   done clear
  View Solution play_arrow

• question_answer69)
  Maximum limit of premium on shares is:
  A)
  5%                                            done clear
  B)
  10%        done clear
  C)
  No Limit                                    done clear
  D)
  100% done clear
  View Solution play_arrow

• question_answer70)
  On issue of shares premium is:
  A)
  Profit                  done clear
  B)
  Income done clear
  C)
  Revenue Receipt  done clear
  D)
  Capital Profit done clear
  View Solution play_arrow

• question_answer71)
  One of the conditions, in addition to others, for allotment of shares is:
  A)
  resolution in general meeting done clear
  B)
  receiving minimum subscription done clear
  C)
  full subscription by public done clear
  D)
  full payment on application done clear
  View Solution play_arrow

• question_answer72)
  X Ltd. forfeited 2,000 shares of Rs. 10 each (which were issued at par) held by Naresh for non-payment of allotment money of Rs. 4 per share. The called-up value per share was Rs. 9. On forfeiture, the amount debited to share capital account will be:
  A)
  Rs. 10,000 done clear
  B)
  Rs. 8,000     done clear
  C)
  Rs. 2,000                                   done clear
  D)
  Rs. 18,000 done clear
  View Solution play_arrow

• question_answer73)
  If a share of Rs. 10 issued at a premium of Rs. 2 on which the full amount has been called and Rs. 8 (including premium) paid is forfeited, the share capital account will be debited with:
  A)
  Rs. 12                                       done clear
  B)
  Rs. 10       done clear
  C)
  Rs. 8                                         done clear
  D)
  Rs. 6 done clear
  View Solution play_arrow

• question_answer74)
  According to Companies Act, minimum subscription has been fixed at......... of the issued amount.
  A)
  25%                                          done clear
  B)
  50%      done clear
  C)
  90%                                          done clear
  D)
  100% done clear
  View Solution play_arrow

• question_answer75)
  Issue of shares at a price higher than its face value is called:
  A)
  Issue at a Profit   done clear
  B)
  Issue at a Premium done clear
  C)
  Issue at a Discount  done clear
  D)
  Issue at a Loss done clear
  View Solution play_arrow

• question_answer76)
  Minimum subscription amount of 90% is related to which share capital?
  A)
  Authorised Capital done clear
  B)
  Issued Capital done clear
  C)
  Paid-up Capital    done clear
  D)
  Reserve Capital done clear
  View Solution play_arrow

• question_answer77)
  Anthony Ltd. issued 40,000 equity shares of Rs. 20 each payable as Rs. 5 on application; Rs. 7 on allotment and Rs. 8 on final call Company received the due amount but one shareholder holding 250 shares did not pay the allotment money and another shareholder holding 150 shares failed to pay the amount due on final call. Total amount of calls-in-arrears is:
  A)
  Rs. 1,750                                   done clear
  B)
  Rs. 3.200     done clear
  C)
  Rs. 6,000                                   done clear
  D)
  Rs. 4,950 done clear
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• question_answer78)
  If discount on reissue of shares is less than the amount forfeited, the surplus is transferred to:
  A)
  Capital Reserve   done clear
  B)
  General Reserve done clear
  C)
  Securities Premium Reserve done clear
  D)
  Statement of Profit and Loss done clear
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• question_answer79)
  . Which of the following is not a capital profit?
  A)
  Profit prior to incorporation of the company done clear
  B)
  Profit from the sale of fixed assets done clear
  C)
  Premium on issue of shares done clear
  D)
  Compensation received on the termination of a contract done clear
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• question_answer80)
  On an equity share of Rs. 20, the company called-up Rs. 16 but Rs.14 has been received by the company, equity share capital account will be credited by:
  A)
  Rs. 20                                       done clear
  B)
  Rs. 16       done clear
  C)
  Rs. 14                                       done clear
  D)
  Rs. 2 done clear
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• question_answer81)
  Share application account is in the nature of:
  A)
  Real Account       done clear
  B)
  Personal Account done clear
  C)
  Nominal Account done clear
  D)
  None of these done clear
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• question_answer82)
  When a company issues shares at a premium, the amount of premium should be received by the company:
  A)
  along with application money done clear
  B)
  along with allotment money done clear
  C)
  along with calls done clear
  D)
  along with any of the above done clear
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• question_answer83)
  Green Ltd. had allotted 10,000 shares to the applicants of 14,000 shares on pro-rata basis. The amount payable on application is Rs. 2 per share. Mohan applied for 420 shares. The number of shares allotted to Mohan are:
  A)
  60 shares     done clear
  B)
  320 shares done clear
  C)
  340 shares           done clear
  D)
  300 shares done clear
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• question_answer84)
  Gopal Ltd. purchased machine of Rs. 1,15,000 from Indian Traders, payment of Rs. 10,000 was made by issuing cheque and the remaining amount by issue of equity shares of the face value of Rs. 10 each fully paid at an issue price of Rs. 10.50 each. Amount of securities premium will be:
  A)
  Rs. 6,000                                   done clear
  B)
  Rs. 7,000    done clear
  C)
  Rs. 5,000                                   done clear
  D)
   Rs. 4.000 done clear
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• question_answer85)
  Mohar Ltd. forfeited 160 shares of Rs. 10 each on which the holder had paid only the application money of Rs. 2 per share. Out of these, 40 shares were reissued to Gaurav as fully paid for Rs. 9 per share. The gain on reissue is:
  A)
  Rs. 320               done clear
  B)
  Rs. 160 done clear
  C)
  Rs. 40                 done clear
  D)
  None of these done clear
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• question_answer86)
  Forfeiture of shares results in the reduction of:
  A)
  Subscribed Capital done clear
  B)
  Authorised Capital done clear
  C)
  Reserve Capital    done clear
  D)
  Fixed Assets done clear
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• question_answer87)
  X Ltd. forfeited 500 shares of Rs.10 each, Rs. 7 called up, issued at a premium of Rs. 2 per share to be paid at the time of allotment for non-payment of first call of Rs. 2 per share. Entry on forfeiture will be:
  A)

  Share Capital A/c	Dr.	3,500
  Securities Premium Reserve A/c	Dr.	1,000
  To Share First Call A/c		1,000
  To Share Forfeiture A/c		3,500

    done clear
  B)
  Share Capital A/c              Dr.            4,500 Securities Premium Reserve A/c Dr.     1,000To Share First Call A/c                       1,000 To Share Forfeiture A/c                      4,500 done clear
  C)
  Share Capital A/c              Dr.    4,500 To Share First Call A/c               1,000 To Share Forfeiture A/c              3.500 done clear
  D)
  Share Capital A/c              Dr.    3,500 To Share First Call A/c                1,000 To Share Forfeiture A/c                2,500 done clear
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• question_answer88)

  Sun & Moon Ltd. invited applications for 25,000 equity shares of Rs. 10 each and received 30,000 applications along with the application money of Rs. 4 per share. Which of the following alternatives can be followed?

  (i) Refund the excess application money and full allotment to rest of the applicants.

  (ii) Not to allot any share to some applicants, full allotment to some of the applicants and pro-rata allotment to the rest of the applicants.

  (iii) Not to allot any share to some applicants and make pro- rata allotment to other applicants.

  (iv) Make pro-rata allotment to all the applicants and adjust the excess money received towards call money.

  A)
  Only (i)               done clear
  B)
  (i) and (iii) done clear
  C)
  Only (ii)              done clear
  D)
  All of these done clear
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• question_answer89)
  Voluntary return of shares for cancellation by the shareholders is called:
  A)
  Cancellation of shares done clear
  B)
  Forfeiture of shares done clear
  C)
  Surrender of shares   done clear
  D)
  None of these done clear
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• question_answer90)
  A company forfeited the following shares: 200 shares of Rs.10 each; called up Rs. 9 per share, paid-up Rs. 7 per share. Journal entry for forfeiture will be:
  A)
  Share Capital A/c            Dr.      2,000 To Share Forfeiture A/c                           200 To Calls-in-arrears A/c                          1,800 done clear
  B)
  Share Capital A/c            Dr.      2,000 To Share Forfeiture A/c                       1,800 To Calls-in-arrears A/c                            200 done clear
  C)
  Share Capital A/c            Dr.      1,800 To Share Forfeiture A/c                       1,400 To Calls-in-Arrears A/c                           400 done clear
  D)
  Share Capital A/c            Dr.      1,800 To Share Forfeiture A/c                           400 To Calls-in-Arrears A/c                          1,400 done clear
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• question_answer91)
  The amount of discount on reissue of forfeited shares cannot exceed:
  A)
  5% of the face value done clear
  B)
  10% of the face value done clear
  C)
  the amount received on forfeited shares done clear
  D)
  the amount not received on forfeited shares done clear
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• question_answer92)
  If the premium on the forfeited shares had already been received, then securities premium account should be:
  A)
  credited done clear
  B)
  debited done clear
  C)
  no treatment done clear
  D)
  None of the above done clear
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• question_answer93)
  At the time of reissue of all forfeited shares:
  A)
  general reserve is debited with the credit balance left in the forfeited shares account. done clear
  B)
  general reserve is credited with the credit balance left in the forfeited shares account. done clear
  C)
  capital reserve is debited with the credit balance left in the forfeited shares account. done clear
  D)
  capital reserve is credited with the credit balance left in the forfeited shares account. done clear
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• question_answer94)
  Discount allowed on re-issue of forfeited shares is debited to:
  A)
  Share Capital A/c done clear
  B)
  Share Forfeiture A/c done clear
  C)
  Statement of Profit & Loss done clear
  D)
  General Reserve A/c done clear
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• question_answer95)
  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 done clear
  B)
  Pro-rata Allotment done clear
  C)
  Forfeiture of Shares done clear
  D)
  All of the above done clear
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• question_answer96)
  If a shareholder does not pay his dues on allotment, for the amount due, there will be a:
  A)
  credit balance in the shares allotment account done clear
  B)
  debit balance in the shares forfeiture account done clear
  C)
  credit balance in the shares forfeiture account done clear
  D)
  debit balance in the shares allotment account done clear
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• question_answer97)
  The balance of the forfeited shares account after reissue of forfeited shares is transferred to:
  A)
  Statement of Profit & Loss done clear
  B)
  Share Capital A/c done clear
  C)
  Capital Reserve A/c done clear
  D)
  General Reserve A/c done clear
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• question_answer98)
  Which one of the following items is not a part of subscribed capital?
  A)
  Equity Shares done clear
  B)
  Preference Shares done clear
  C)
  Forfeited Shares done clear
  D)
  Bonus Shares done clear
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• question_answer99)
  Balance of share forfeiture account is shown in the balance sheet under the head..........
  A)
  share capital account done clear
  B)
  reserve and surplus done clear
  C)
  current liabilities and provisions done clear
  D)
  unsecured loans done clear
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• question_answer100)
  At the time of forfeiture of shares, the share capital account is debited with:
  A)
  face value            done clear
  B)
  called up value done clear
  C)
  paid up value      done clear
  D)
  issued value done clear
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