12th Class Accountancy Accounting For Share Capital Question Bank

done MCQs - Accounting for Share Capital Total Questions - 155

• question_answer1)
  A company has a ______
  A)
  Perpetual succession  done clear
  B)
  Separate legal entity done clear
  C)
  Common seal done clear
  D)
  All of the above done clear
  View Solution play_arrow

• question_answer2)
  In case of company limited by share, the liability of a member in a company is
  A)
  Limited done clear
  B)
  Unlimited done clear
  C)
  Both A and B done clear
  D)
  None of these done clear
  View Solution play_arrow

• question_answer3)
  Minimum number of members in a Public company is
  A)
  2  done clear
  B)
  7 done clear
  C)
  20  done clear
  D)
  200 done clear
  View Solution play_arrow

• question_answer4)
  In case of one person company maximum paid up capital should not exceed :
  A)
  50 lakhs done clear
  B)
  100 Lakhs  done clear
  C)
  200 Lakhs done clear
  D)
  None of these done clear
  View Solution play_arrow

• question_answer5)
  As per SEBI Guidelines, minimum subscription shall be fixed at
  A)
  90% of the issued amount done clear
  B)
  90% of the authorised capital done clear
  C)
  85 % of the issued amount done clear
  D)
  90% of the authorised capital done clear
  View Solution play_arrow

• question_answer6)
  The portion of subscribed capital which can be called up only on the winding of the company is called
  A)
  Authorised capital done clear
  B)
  Reserve Capital done clear
  C)
  Called up capital  done clear
  D)
  Uncalled capital done clear
  View Solution play_arrow

• question_answer7)
  Authorised capital of the company is mentioned in
  A)
  Memorandum of association done clear
  B)
  Article of association done clear
  C)
  Prospectus done clear
  D)
  None of these done clear
  View Solution play_arrow

• question_answer8)
  Rate of dividend on equity share holder is
  A)
  10% done clear
  B)
  5% done clear
  C)
  20% done clear
  D)
  Rate not fixed done clear
  View Solution play_arrow

• question_answer9)
  AS per SEBI Guidelines Application money should not be less than __ issue price of each share
  A)
  10% done clear
  B)
  15% done clear
  C)
  20% done clear
  D)
  25% done clear
  View Solution play_arrow

• question_answer10)
  Rishi Ltd. invited applications for issuing 1,000 equity shares of Rs.100 each at a premium of 20%. The whole amount was payable on application. The issue was fully subscribed. Amount received on application will be
  A)
  1,00,000 done clear
  B)
  1,20,000 done clear
  C)
  80,000 done clear
  D)
  1,10,000 done clear
  View Solution play_arrow

• question_answer11)
  Rishi Ltd. was registered with a capital of Rs.3,00,000 in Equity Shares of Rs.100 each. It issued 2,000 of such shares payable Rs.25 per share on application; Rs.25 on allotment; Rs.20 on first call; and the balance as and when required. All amounts payable on application and allotments were duly received but company could not call the first call money till 31.03.2021. Total amount to be received by the company till 31.03.2021 is:
  A)
  50,000 done clear
  B)
  1,00,000 done clear
  C)
  75,000 done clear
  D)
  1,50,000 done clear
  View Solution play_arrow

• question_answer12)
  X Ltd. issued 75,000 equity shares of Rs.10 each at a premium of 40%. The whole amount was payable on application. Applications for 1,20,000 shares were received. Amount refunded by the company will be:
  A)
  16,80,000 done clear
  B)
  10,50,000 done clear
  C)
  4,50,000 done clear
  D)
  6,30,000 done clear
  View Solution play_arrow

• question_answer13)
  VK Ltd. invited application for 20,000 shares @ Rs.10 each payable as Rs.4 on application, Rs.5 on allotment and balance on call. Applications were received for only 12,000 shares. Amount to be transferred to capital account is:
  A)
  2,00,000 done clear
  B)
  80,000  done clear
  C)
  1,00,000 done clear
  D)
  Nil done clear
  View Solution play_arrow

• question_answer14)
  X Ltd. purchased the business of B Ltd. for Rs.6,00,000 payable in fully paid shares of Rs.10 each. Number of shares to be issued by X Ltd. _______
  A)
  6,00,000 done clear
  B)
  60,000  done clear
  C)
  Nil done clear
  D)
  None of these done clear
  View Solution play_arrow

• question_answer15)
  A Ltd. purchased the business of B Ltd. For Rs.6,75,000 payable in fully paid shares of Rs.10 each at a premium of 25%. Number of shares to be issued by A Ltd. will be
  A)
  6,75,000 done clear
  B)
  67,500 done clear
  C)
  54,000 done clear
  D)
  Nil done clear
  View Solution play_arrow

• question_answer16)
  X Ltd. purchased a running business from Y Ltd. for a sum of Rs.30,00,000 payable 40% by a cheque and the balance by the issue of fully paid equity shares of Rs.100 each at a premium of 20%. Number of shares to be issued by X Ltd._____
  A)
  30,000 done clear
  B)
  25,000 done clear
  C)
  15,000 done clear
  D)
  18,000 done clear
  View Solution play_arrow

• question_answer17)
  X Ltd. issued 8,500 Equity shares of Rs.100 each at a premium of 5% Payable as: Rs.25 on Application; Rs.45 on Allotment (including premium) and Rs.35 on First and Final Call. The applications for 8,000 shares were received and all were accepted. All the money was duly received except the first and final call on 200 shares. Amount to be received on first & final call will be:
  A)
  3,43,000 done clear
  B)
  3,50,000 done clear
  C)
  2,80,000 done clear
  D)
  2,73,000 done clear
  View Solution play_arrow

• question_answer18)
  X Ltd. issued 15,000 Equity shares of Rs.100 each payments as : Rs.25 on Application; Rs.25 on Allotment and Rs.50 on First and Final Call. The applications for 14,000 shares were received and all were accepted. All the money was duly received except the first and final call on 1500 shares. Amount to be shown in the balance sheet as share capital will be:
  A)
  14,00,000 done clear
  B)
  15,00,000 done clear
  C)
  13,25,000 done clear
  D)
  14,25,000 done clear
  View Solution play_arrow

• question_answer19)
  Calls in advance (not adjusted till 31.03.2021) is to be shown under which head of the balance sheet;
  A)
  Share capital done clear
  B)
  Non-current Liability  done clear
  C)
  Current Liability done clear
  D)
  Current Asset done clear
  View Solution play_arrow

• question_answer20)
  Rishi Ltd. was registered with Equity share capital of Rs.2,50,000 in shares of Rs.100 each. It issued 2,000 of such shares payable Rs.25 per share on application; Rs.25 on allotment; Rs.20 on first call; and Rs.30 on final call. All moneys payable on application and allotments were duly received; but when the first call of Rs.20 per share was made, one shareholder holding 100 shares failed to pay the amount and another shareholder holding 200 shares paid the full amount on first call. Final call was not made till the end of the year. Closing balance of cash book will be:
  A)
  1,40,000 done clear
  B)
  1,38,000 done clear
  C)
  1,44,000 done clear
  D)
  1,46,000 done clear
  View Solution play_arrow

• question_answer21)
  Private Placement shall be made upto:
  A)
  50 persons done clear
  B)
  100 Persons done clear
  C)
  200 persons done clear
  D)
  500 persons done clear
  View Solution play_arrow

• question_answer22)
  Rishi Ltd. decided to issue 75,000 equity shares of Rs.10 each at a premium of 20%. The whole amount was payable on application. Applications for 1,00,000 shares were received. Applications for 5,000 shares were rejected and shares were allotted to the remaining applicants on pro-rata basis. Amount refunded by the company will be:
  A)
  50,000 done clear
  B)
  3,00,000 done clear
  C)
  2,40,000 done clear
  D)
  60,000 done clear
  View Solution play_arrow

• question_answer23)

  Company offers 15,000 shares of Rs.10 each to the public. The amount is payable as follows;

  On Application Rs.3 per share

  On Allotment Rs.3 per share

  On 1st call Rs.2 per share

  On 2nd call Rs.2 per share

  Applications are received for 20,000 shares. The directors made the allotment as follows:

  No allotment to applicants for 3,000 shares

  Rest of the shares were allotted on pro-rata basis.

  Allotment money to be adjusted on application will be:

  A)
  6,000 done clear
  B)
  9,000 done clear
  C)
  45,000 done clear
  D)
  15,000 done clear
  View Solution play_arrow

• question_answer24)

  Rishi Limited invited applications for issuing 40,000 shares of Rs.10 each at par. The amount was payable as follows:

  On Application Rs.2 per share;

  On Allotment Rs.3 per share

  On First and Final Call Rs.5 per share

  Applications were received for 70,000 shares. Allotment was made on the following basis:

  To applicants for 20,000 shares - Full

  To applicants for 40,000 shares - 50%

  To applicants for 10,000 shares - Nil

  Allotment money to be adjusted on application will be:

  A)
  40,000 done clear
  B)
  80,000  done clear
  C)
  20,000 done clear
  D)
  60,000 done clear
  View Solution play_arrow

• question_answer25)
  Rishi Limited invited applications for issuing 40,000 shares of Rs.10 each at par. The amount was payable as follows; On Application Rs.4 per share; On Allotment Rs.2 per share; On First and Final Call Rs.4 per share. Applications were received for 70,000 shares and Allotment was made on pro-rata basis and excess application money to be adjusted on allotment only. Allotment money to be adjusted on application will be:
  A)
  40,000 done clear
  B)
  1,60,000 done clear
  C)
  1,20,000 done clear
  D)
  80,000 done clear
  View Solution play_arrow

• question_answer26)
  Rishi Limited invited applications for issuing 30,000 shares of Rs.10 each at par. The amount was payable as follows : On Application Rs.4 per share; On Allotment Rs.2 per share; On First and Final Call Rs.4 per share. Applications were received for 70,000 shares and Allotment was made on pro-rata basis and excess application money to be adjusted on allotment and first & final call. Amount refunded to the applicant will be :
  A)
  1,00,000 done clear
  B)
  60,000 done clear
  C)
  1,20,000 done clear
  D)
  Nil done clear
  View Solution play_arrow

• question_answer27)

  Vinod Ltd. Invited application for 50,000 equity share @ 10 each at a premium of 20% payable as Rs.6 on application and Rs.6 on allotment (including premium). Application were received for 90,000 equity share and allotment was made as follows:

  Applied 40,000 - Allotted 10,000 (Category 1)

  Applied 50,000 - Allotted 40,000 (Category 2)

  Mr. Ram to whom 1000 shares allotted in category 2 failed to pay the allotment money. Calculate net allotment money not paid by Mr. Ram :

  A)
  7,500 done clear
  B)
  1,500 done clear
  C)
  6,000 done clear
  D)
  4,500 done clear
  View Solution play_arrow

• question_answer28)
  Securities Premium Reserve can be utilised for :
  A)
  To write off the preliminary expense done clear
  B)
  To Pay the dividend to equity share holders done clear
  C)
  To create general reserve done clear
  D)
  None of these done clear
  View Solution play_arrow

• question_answer29)
  ABC Ltd. Issued 10,000 shares @ 10 each payable as follows; On application 2; On allotment 4; on first call 3; and balance on final call All the shares were subscribed by the public and allotted by the company on time. All money due was received but one shareholder Ram to whom 1000 share allotted failed to pay the first call and his share are forfeited immediately after 1st call. Share forfeiture account is to be credited with:
  A)
  2000 done clear
  B)
  6000 done clear
  C)
  9000 done clear
  D)
  Nil done clear
  View Solution play_arrow

• question_answer30)
  ABC ltd. Issued 15,000 shares @ 10 each payable as follows; On application 3; On allotment 2; on first call 3; and balance on final call All the shares were subscribed by the public and allotted by the company on time. All money due was received but one shareholder Rishi to whom 500 shares allotted failed to pay the first call and final call. Rishi's shares were forfeited after the final call made. While forfeiting his shares. Share Capital account is to be debited with:
  A)
  1500 done clear
  B)
  2500 done clear
  C)
  4000     done clear
  D)
  5000 done clear
  View Solution play_arrow

• question_answer31)
  Rishi Ltd. Issued 20,000 Equity shares @ 10 each payable as follows; On application 4; On allotment 1; on first call 2; and balance on final call All the shares were subscribed by the public and allotted by the company on time. All money due was received but one shareholder Rishi to whom 2000 share allotted failed to pay the first call. His shares were forfeited immediately after the 1st call. Final call was riot made till now. Share Capital Account (at the time forfeiture) is to be debited with:
  A)
  8000 done clear
  B)
  10000 done clear
  C)
  14000 done clear
  D)
  20,000 done clear
  View Solution play_arrow

• question_answer32)
  Rishi Ltd. Issued 3,000 shares @ 10 each payable as follows: On application 3; On allotment 4; and on first call 3 Applications were received for 3500 shares and allotment was made on pro-rata basis to all the applicants, Excess money is to be adjusted on allotment only. Tarun one shareholder to whom 300 shares were allotted did not pay allotment and call money and his shares were forfeited after the first call made. At the time of forfeiture, the Share forfeiture account is to be credited with:
  A)
  900       done clear
  B)
  1200 done clear
  C)
  1050     done clear
  D)
  1400 done clear
  View Solution play_arrow

• question_answer33)
  Rishi Ltd. Issued 3,000 shares @ 10 each payable as follows: On application 3; On allotment 4; and on first call 3 Application were received for 3500 shares and allotment was made on pro-rata basis. Excess money is to be adjusted on allotment only. Tarun one shareholder to whom 300 shares were allotted did not pay allotment and call money and his shares were forfeited after the first call made. Share allotment Account is to be credited with (in the entry of share forfeiture):
  A)
  900       done clear
  B)
  1200 done clear
  C)
  1050 done clear
  D)
  1400 done clear
  View Solution play_arrow

• question_answer34)
  ABC Ltd. Issued 9,000 shares @ 10 each payable as follows; On application 3; On allotment 4; and on first call 2 and balance on final call; Application were received for 12000 shares and allotment was made on pro-rata basis. Excess money is to be adjusted on allotment only. Tarun one shareholder to whom 900 shares were allotted did not pay allotment and calls money and his shares were forfeited after the final call made. Share Allotment Account is to be credited with (in the entry of share forfeiture):
  A)
  900  done clear
  B)
  1800 done clear
  C)
  2700 done clear
  D)
  3600 done clear
  View Solution play_arrow

• question_answer35)
  500 shares of Rs.10 each were forfeited for non-payment of Rs.2 per share on 1st call and Rs.2 per share on final Call. Share Forfeiture Account will be credited with (at the time of forfeiture):
  A)
  3000 done clear
  B)
  2000 done clear
  C)
  5000     done clear
  D)
  1000 done clear
  View Solution play_arrow

• question_answer36)
  1000 shares of Rs.10 each were forfeited for non-payment of Rs.2 per share on First call. Final call of Rs.2 was not made yet. Share Capital Account will be Debited with (At the time of forfeiture):
  A)
  6000 done clear
  B)
  10000 done clear
  C)
  8000 done clear
  D)
  4000 done clear
  View Solution play_arrow

• question_answer37)
  2000 shares of Rs.10 each issued at a premium of Rs.2 per share, were forfeited for non-payment of Rs.2 per share on final call. Share Capital Account will be Debited with (At the time of forfeiture):
  A)
  4,000 done clear
  B)
  16,000 done clear
  C)
  20,000 done clear
  D)
  24,903 done clear
  View Solution play_arrow

• question_answer38)
  500 shares of Rs.10 each were forfeited for non-payment of Rs.2 per share on First call and Rs.1 per share on Second and Final call. Share Forfeiture Account will be credited with (At the time of forfeiture):
  A)
  5000 done clear
  B)
  3500 done clear
  C)
  1500 done clear
  D)
  4000 done clear
  View Solution play_arrow

• question_answer39)
  600 shares of Rs.10 each issued at a premium of 20%, were forfeited for non-payment of Rs.5 per share on allotment (including premium) and Rs.2 per share on first and final call. Share Forfeiture Account will be credited with (At the time of forfeiture):
  A)
  3000 done clear
  B)
  1800 done clear
  C)
  1200     done clear
  D)
  6000 done clear
  View Solution play_arrow

• question_answer40)
  600 shares of Rs.10 each issued at a premium of 20%, were forfeited for non-payment of Rs.5 per share on allotment (including premium) and Rs.2 per share on first and final call. Share Allotment Account will be credited with (At the time of forfeiture):
  A)
  3000 done clear
  B)
  1800 done clear
  C)
  1200 done clear
  D)
  6000 done clear
  View Solution play_arrow

• question_answer41)
  Rishi Ltd. issued 1,00,000 equity share of Rs.10 each payable as 3 on application; 3 on allotment; and balance in two equal instalments. All the calls were made and received except the final call on 5000 shares. Subscribed but not fully paid up capital will be:
  A)
  40,000 done clear
  B)
  50,000 done clear
  C)
  8,00,000 done clear
  D)
  10,00,000 done clear
  View Solution play_arrow

• question_answer42)
  Rishi Ltd. issued 50,000 equity share of Rs.100 each payable as: 30 on application; 20 on allotment; and balance in two equal instalments. The company did not make the final call yet. All the amount received, Except on the first call on 5000 shares. Subscribed but not fully paid up capital will be:
  A)
  37,50,000 done clear
  B)
  36,25,000 done clear
  C)
  2,75,000  done clear
  D)
  3,75,000 done clear
  View Solution play_arrow

• question_answer43)
  Rishi Ltd. was registered with an authorised capital of Rs.2,00,000 in Rs.10 per share, of these 6,000 shares were issued as fully paid to the vendors for the purchase of office buildings. 8,000 shares were subscribed for by the public and during the first year Rs.6 per share were called up, payable Rs.3 on application, Rs.1 on allotment, Rs.1 on first call, and Rs.1 on second call. Subscribed and fully paid up capital will be;
  A)
  60,000 done clear
  B)
  48,000  done clear
  C)
  1,08,000  done clear
  D)
  1,40,000 done clear
  View Solution play_arrow

• question_answer44)
  On 1st April, 2020, Rishi Ltd. was formed with an authorized capital of Rs.10,00,000 divided into 1,00,000 equity shares of Rs.10 each. The company invited applications for 80,000 equity shares. The company received applications for 75,000 equity shares. During the first year, Rs.8 per share were called. Ram holding 1,000 shares did not pay the first call of Rs.2 per share. Ram shares were forfeited after the first call. Share capital to be shown in the balance sheet is:
  A)
  7,56,000   done clear
  B)
  7,46,000 done clear
  C)
  6,06,000 done clear
  D)
  5,98,000 done clear
  View Solution play_arrow

• question_answer45)
  On 1st April, 2020, Rishi Ltd. was formed with an authorized capital of Rs.5,00,000 divided into 50,000 Equity shares of Rs.10 each. The company invited applications for 38,000 equity shares and received applications for 35,000 equity shares. All the amount due on allotment and First and Final call received except a shareholder Tarun (to whom 1,000 shares were allotted) did not pay the First and Final call of Rs.2 per share. Tarun's shares were forfeited after the First and Final call and out of his forfeited shares 700 were reissued at Rs.8 per share fully paid up. Share capital to be shown in the balance sheet is:
  A)
  3,49,400 done clear
  B)
  3,44,600 done clear
  C)
  3,47,600 done clear
  D)
  3,52,400 done clear
  View Solution play_arrow

• question_answer46)
  Match the followings :

  1.	Minimum number of members in a private company	(A)	Unlimited
  2.	Maximum number of members in a private company	(B)	2
  3.	Minimum number of members in a Public company	(C)	200
  4.	Maximum number of members in a public company	(D)	7

  A)
  1-[B]; 2-[C]; 3-[D]; 4-[A] done clear
  B)
  1-[B]; 2-[C]; 3-[A]; 4-[D] done clear
  C)
  1-[C]; 2-[A]; 3-[D]; 4-[B] done clear
  D)
  1-[C]; 2-[D]; 3-[A]; 4-[B] done clear
  View Solution play_arrow

• question_answer47)
  Match the followings :

  1.	Minimum number of Director in a private company	(A)	3
  2.	Maximum number of Director in a private company	(B)	2
  3.	Minimum number of Director in a Public company	(C)	15
  4.	Minimum number of Director in a one-person company	(D)	1

  A)
  1-[B]; 2-[C]; 3-[D]; 4-[A] done clear
  B)
  1-[B]; 2-[C]; 3-[A]; 4-[D] done clear
  C)
  1-[C]; 2-[A]; 3-[D]; 4-[B] done clear
  D)
  1-[C]; 2-[D]; 3-[A], 4-[B] done clear
  View Solution play_arrow

• question_answer48)
  Rishi Ltd. Is registered with authorised capital of Rs.10,00,000 divided into 1,00,000 Equity share of Rs.10 each. Out of which 80,000 shares are offered to the public and applications were received for 75,000 shares only. Company called Rs.8 per share till now.

  1.	Authorised share capital	(A)	8,00,000
  2.	Issued share capital	(B)	6,00,000
  3.	Subscribed share capital	(C)	10,00,000
  4.	Called up capital	(D)	7,50,000

  A)
  1-[B]; 2-[C]; 3-[D]; 4-[A] done clear
  B)
  1-[B]; 2-[C]; 3-[A]; 4-[D] done clear
  C)
  1-[C]; 2-[A]; 3-[D]; 4-[B] done clear
  D)
  1-[C]; 2-[D]; 3-[A]; 4-[B] done clear
  View Solution play_arrow

• question_answer49)
  Match the followings: Rishi Ltd. is registered with authorised capital of Rs.10,00,000 divided into 1,00,000 Equity share of Rs.10 each. Out of which 80,000 shares are offered to the public. If the face value of shares is Rs.10 each but only Rs.6 called by the company and Rs.4 is still uncalled. Company will pass a resolution that Rs.3 will not be called except in case of winding up:

  1.	Issued share capital	(A)	4,80,000
  2.	Called up capital	(B)	2,40,000
  3.	Uncalled capital	(C)	8,00,000
  4.	Reserve capital	(D)	80,000

  A)
  1-[B]; 2-[C]; 3-[D]; 4-[A] done clear
  B)
  1-[B]; 2-[C]; 3-[A]; 4-[D] done clear
  C)
  1-[C]; 2-[A]; 3-[D]; 4-[B] done clear
  D)
  1-[C]; 2-[D]; 3-[A]; 4-[B] done clear
  View Solution play_arrow

• question_answer50)
  Match the followings: X Ltd. purchased the business of Y Ltd. for Rs.1,80,000 payable in fully paid Equity Shares of Rs.10 each. Calculate number of shares to be issued:

  1.	If Shares issued at Par	(A)	12.000
  2.	If Shares issued at a premium of 20%	(B)	10,500
  3.	If Shares issued at a premium of 50%	(C)	18,000
  4.	30% of the payment was made in cash and balance by issue of equity share at a premium of 20%	(D)	15,000

   
  A)
  1-[B]; 2-[C]; 3-[D]; 4-[A] done clear
  B)
  1-[B]; 2-[C]; 3-[A]; 4-[D] done clear
  C)
  1-[C]; 2-[A]; 3-[D]; 4-[B] done clear
  D)
  1-[C]; 2-[D]; 3-[A]; 4-[B] done clear
  View Solution play_arrow

• question_answer51)

  Rishi Limited invited applications for 2,00,000 of its equity shares of Rs.10 each on the following terms:

  Payable on application Rs.5 per share

  Payable on allotment Rs.3 per share

  Payable on first and final call Rs.2 per share

  Applications for 2,50,000 shares were received. It was decided:

  to refuse allotment to the applicants for 10,000 shares;

  to allot in full to applicants for 40,000 shares;

  to allot the balance of the available shares pro-rata among the other applicants; and

  Excess application money is to be utilised on allotment One applicant (Ram) who applied for 2000 shares (had been allotted shares on pro-rata basis), did not pay the amount due on allotment.

  Match the followings:

  1.	Number of shares allotted to Ram	(A)	2,00,000
  2.	Allotment money adjusted on application	(B)	50,000
  3.	Amount refunded on application	(C)	3,97,200
  4.	Net allotment money received	(D)	1600

  A)
  1-[B]; 2-[C]; 3-[D]; 4-[A] done clear
  B)
  1-[D]; 2-[B]; 3-[A]; 4-[C] done clear
  C)
  1-[C]; 2-[A]; 3-[D]; 4-[B] done clear
  D)
  1-[D]; 2-[A]; 3-[B]; 4-[C] done clear
  View Solution play_arrow

• question_answer52)
  Forfeited share can be reissued at:
  A)
  Par   done clear
  B)
  Premium done clear
  C)
  Discount done clear
  D)
  All of the above done clear
  View Solution play_arrow

• question_answer53)
  The maximum 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 share  done clear
  D)
  The amount not received on fitfeited share done clear
  View Solution play_arrow

• question_answer54)
  Discount allowed on reissue of forfeited share is debited to :
  A)
  Discount on issue of share done clear
  B)
  Share forfeiture a/c done clear
  C)
  Profit & Loss a/c done clear
  D)
  General reserve done clear
  View Solution play_arrow

• question_answer55)
  The balance of the forfeited shares account (after reissue of forfeited share) is transferred to:
  A)
  General reserve done clear
  B)
  Capital reserve done clear
  C)
  Profit & Loss a/c done clear
  D)
  All of the above done clear
  View Solution play_arrow

• question_answer56)
  If a share of Rs.10 on which 7 has been paid, is forfeited, it can be reissued at a minimum price of:
  A)
  3 done clear
  B)
  7 done clear
  C)
  10 done clear
  D)
  13 done clear
  View Solution play_arrow

• question_answer57)
  Rishi Ltd. Forfeited a share of Rs.100 issued at a premium of 20% for non-payment of 1st call of Rs.30 per share and final call of Rs.10 per share. At what minimum price it can be reissued:
  A)
  60 done clear
  B)
  40 done clear
  C)
  100 done clear
  D)
  140 done clear
  View Solution play_arrow

• question_answer58)
  Rishi Ltd. Forfeited 1000 equity share of Rs.100 each issued at a premium of 20% for non-payment of final call of Rs.30 per share. State the maximum amount of discount which can be offered at the time of reissue:
  A)
  1,30,000 done clear
  B)
  30,000  done clear
  C)
  70,000 done clear
  D)
  1,00,000 done clear
  View Solution play_arrow

• question_answer59)
  Rishi Ltd. issued 2000 equity share of Rs.10 each, Payable as; on application Rs.3; on allotment Rs.4; on first call Rs.2 and on final call Rs.100 shares were forfeited on which final call was not received. State the maximum amount of discount at which these shares can be reissued:
  A)
  100 done clear
  B)
  1000  done clear
  C)
  900  done clear
  D)
  1100 done clear
  View Solution play_arrow

• question_answer60)
  If forfeited shares are reissued at premium, then the amount of share forfeiture is transferred to:
  A)
  General reserve done clear
  B)
  Capital reserve done clear
  C)
  Statement of Profit & Loss done clear
  D)
  Share capital done clear
  View Solution play_arrow

• question_answer61)
  X Ltd. Forfeited 500 shares of Rs.10 each fully called up, for non-payment of final call of Rs.3 per share. All the shares were reissued at Rs.9 per share, fully paid up. Amount to be transferred to capital reserve will be
  A)
  3000 done clear
  B)
  3500 done clear
  C)
  500 done clear
  D)
  4500 done clear
  View Solution play_arrow

• question_answer62)
  X Ltd. Forfeited 400 shares of Rs.10 each fully called up, for non-payment of final call of Rs.4 per share. All the shares were reissued at Rs.10 per share, fully paid up. Amount to be transferred to capital reserve will be:
  A)
  1600 done clear
  B)
  2400 done clear
  C)
  4000 done clear
  D)
  None of these done clear
  View Solution play_arrow

• question_answer63)
  X Ltd. forfeited 800 shares of Rs.10 each fully called up, for non-payment of final call of Rs.2 per share. All the shares were reissued to Y as fully paid up for Rs.12 per share. Amount to be transferred to capital reserve will be:
  A)
  6400 done clear
  B)
  1600 done clear
  C)
  8000 done clear
  D)
  9600 done clear
  View Solution play_arrow

• question_answer64)
  X Ltd. Forfeited 500 shares of Rs.10 each fully called up, for non-payment of final call of Rs.4 per share. 300 of these shares were reissued at Rs.8 per share, fully paid up. Amount to be transferred to capital reserve :
  A)
  1800 done clear
  B)
  2400 done clear
  C)
  1200 done clear
  D)
  600 done clear
  View Solution play_arrow

• question_answer65)
  X Ltd. forfeited 500 shares of Rs.10 each, Rs.7 called up, for non-payment of first call of Rs.3 per share. 300 of these shares were reissued at Rs.6 per share as Rs.7 paid up. Amount to be transferred to capital reserve will be
  A)
  1700 done clear
  B)
  900 done clear
  C)
  1800 done clear
  D)
  2100 done clear
  View Solution play_arrow

• question_answer66)
  X Ltd. forfeited 500 shares of Rs.10 each, Rs.7 called up, for non-payment of first call of Rs.3 per share. 300 of these shares were reissued at Rs.6 per share as fully paid up. Amount to be transferred to capital reserve will be:
  A)
  800 done clear
  B)
  Nil  done clear
  C)
  1800 done clear
  D)
  600 done clear
  View Solution play_arrow

• question_answer67)
  X Ltd. Forfeited 500 shares of Rs.10 each, Rs.8 called up; and Rs.6 paid up. 300 of these shares were reissued at Rs.8 per share as fully paid up. Amount to be transferred to capital reserve will be:
  A)
  2600 done clear
  B)
  Nil done clear
  C)
  1400 done clear
  D)
  1200 done clear
  View Solution play_arrow

• question_answer68)
  X Ltd. forfeited 500 shares of Rs.10 each issued at a premium of 20% for non-payment of allotment (including premium) and first and final call of Rs.9 per share. 300 of these shares were reissued at Rs.7 per share as fully paid up. Amount to be transferred to capital reserve will be:
  A)
  600  done clear
  B)
  Nil done clear
  C)
  2400  done clear
  D)
  1200 done clear
  View Solution play_arrow

• question_answer69)
  X Ltd. Forfeited 500 shares of Rs.10 each fully called up, on which Rs.4000 has been paid up. 300 of these shares were reissued for a payment of 2400. Amount to be transferred to capital reserve will be:
  A)
  2400 done clear
  B)
  Nil  done clear
  C)
  1800 done clear
  D)
  1200 done clear
  View Solution play_arrow

• question_answer70)
  X Ltd. forfeited 1000 shares of Rs.10 each fully called up for non-payment of final call of Rs.2 per share. All these shares were reissued in such a way that amount transferable to capital reserve will be 6000. Reissue Price of these share will be:
  A)
  8 done clear
  B)
  10 done clear
  C)
  2 done clear
  D)
  6 done clear
  View Solution play_arrow

• question_answer71)
  X Ltd. forfeited 1000 shares of Rs.10 each fully called up, for non-payment of final call of Rs.2 per share. 800 of these shares were reissued in such a way that amount transferable to capital reserve will be 6400. Reissue Price of these share will be:
  A)
  8  done clear
  B)
  10 done clear
  C)
  2 done clear
  D)
  6 done clear
  View Solution play_arrow

• question_answer72)
  X Ltd. forfeited 1000 shares of Rs.10 each fully called up, for non-payment of final call of Rs.2 per share. 800 of these shares were reissued in such a way that amount transferable to capital reserve will be 3200. Reissue Price of these share will be:
  A)
  8 done clear
  B)
  10  done clear
  C)
  4   done clear
  D)
  6 done clear
  View Solution play_arrow

• question_answer73)
  X Ltd. forfeited 6000 shares of Rs.10 each on which Rs.7 has been called up and Rs.5 paid up. 4500 of these shares were reissued at Rs.5 per share, Rs.7 called up. Amount transfer to capital reserve will be:
  A)
  13,500 done clear
  B)
  22,500 done clear
  C)
  9,000 done clear
  D)
  17,500 done clear
  View Solution play_arrow

• question_answer74)

  X Ltd. forfeited the following shares:

  Forfeited 1000 shares of Ram for non-payment of final call of Rs.4 per share

  Forfeited 500 shares of Shyam for non-payment of first and final call of Rs.5 per share

  Out of the above forfeited share 1200 shares are reissue at 9 per share as fully paid up, which includes all the shares of Ram.

  Amount transferable to capital reserve will be:

  A)
  7,300 done clear
  B)
  5,550 done clear
  C)
  5,800 done clear
  D)
  6,000 done clear
  View Solution play_arrow

• question_answer75)
  X Ltd. forfeited 200 shares of Rs.10 each Rs.8 called up, on which he had paid application and allotment money of Rs.5 per share. Out of these, 150 shares were re-issued as fully paid up for Rs.8 per share. Journal entry for reissue of share will be:
  A)

  Bank A/c	Dr.	1200
  Share forfeiture A/c	Dr.	300
  To Equity share capital A/c			1500

    done clear
  B)

  Bank A/c	Dr.	1200
  Discount A/c	Dr.	300
  To Equity share capital A/c			1500

    done clear
  C)

  Bank A/c	Dr.	1200
  To Equity share capital A/c			1200

    done clear
  D)

  Bank A/c	Dr.	1500
  To Equity share capital A/c			1500

    done clear
  View Solution play_arrow

• question_answer76)
  X Ltd. forfeited 500 shares of Rs.10 each Rs.7 called up, on which he had paid application and allotment money of Rs.5 per share. Journal entry for forfeiture of share will be:
  A)

  Share capital A/c	Dr.	5000
  To Share forfeiture A/c			2500
  To Calls in arrear A/c			2500

    done clear
  B)

  Share capital A/c	Dr.	3500
  To Share forfeiture A/c			2500
  To Calls in arrear A/c			1000

    done clear
  C)

  Share capital A/c	Dr.	3500
  To Share forfeiture A/c			1000
  To Calls in arrear A/c			2500

    done clear
  D)

  Share capital A/c	Dr.	2500
  To Share forfeiture A/c			2500

    done clear
  View Solution play_arrow

• question_answer77)
  X Ltd. forfeited 1200 shares of Rs.10 each, Rs.6 called up, for non-payment of First Call of Rs.2 per share. Journal entry for forfeiture of share will be (Calls in arrear account is not opened)
  A)

  Share capital A/c	Dr.	12000
  To Share forfeiture A/c			4800
  To Calls in arrear A/c			7200

    done clear
  B)

  Share capital A/c	Dr.	12000
  To Share forfeiture A/c			4800
  To Equity share 1st call A/c			7200

    done clear
  C)

  Share capital A/c	Dr.	7200
  To Share forfeiture A/c			4800
  To Equity share 1st call A/c			2400

    done clear
  D)

  Share capital A/c	Dr.	7200
  To Share forfeiture A/c			4800
  To Call in arrear A/c			2400

    done clear
  View Solution play_arrow

• question_answer78)
  Z Ltd. forfeited 1800 shares of Rs.10 each, on which first call of Rs.3 per share was not received; the second and final call of Rs.2 per share has not yet been called. Journal entry for forfeiture of share will be (Calls in arrear account is opened):
  A)

  Share capital A/c	Dr.	18000
  To Share forfeiture A/c			9000
  To Call in arrear A/c			9000

    done clear
  B)

  Share capital A/c	Dr.	18000
  To Share forfeiture A/c			9000
  To Equity share 1st call A/c			9000

  done clear
  C)

  Share capital A/c	Dr.	14400
  To Share forfeiture A/c			9000
  To Equity share 1st call A/c			5400

  done clear
  D)

  Share capital A/c	Dr.	14400
  To Share forfeiture A/c			9000
  To Calls in arrear A/c			5400

  done clear
  View Solution play_arrow

• question_answer79)
  A Ltd. forfeited 1,000 shares of Rs.10 each, Rs.7 called up, issued at a premium of 20% (to be paid at the time of allotment) for non-payment of a allotment of Rs.4 per share. Journal entry for forfeiture of share will be (Calls in arrear account is not maintained):
  A)

  Share capital A/c	Dr.	7000
  To Share forfeiture A/c			5000
  To Share allotment A/c			2000

    done clear
  B)

  Share capital A/c	Dr.	10,000
  To Share forfeiture A/c			5,000
  To Share allotment A/c			5,000

    done clear
  C)

  Share capital A/c	Dr.	7,000
  Securities Premium Reserve A/c	Dr.	2,000
  To Share forfeiture A/c			5,000
  To Share allotment A/c			4,000

    done clear
  D)

  Share capital A/c	Dr.	12,000
  Securities Premium Reserve A/c	Dr.	2,000
  To Share forfeiture A/c			5,000
  To Share allotment A/c			7,000

    done clear
  View Solution play_arrow

• question_answer80)
  X Ltd. issued 2,500 shares of Rs.10 each credited as fully paid to the promoters for their services rendered to incorporate the company. Journal entry for issue of share to promoter will be:
  A)

  Cash A/c	Dr.	25,000
  To Equity share capital A/c			25,000

    done clear
  B)

  Assets A/c	Dr.	25,000
  To Equity share capital A/c			25,000

    done clear
  C)

  Incorporation cost A/c	Dr.	25,000
  To Equity share capital A/c			25,000

    done clear
  D)

  Goodwill A/c	Dr.	25,000
  To Equity share capital A/c			25,000

    done clear
  View Solution play_arrow

• question_answer81)
  Which of the following is not shown in the balance sheet of a company?
  A)
  Capital Reserve done clear
  B)
  Securities Premium Reserve done clear
  C)
  Share Capital done clear
  D)
  Reserve Capital done clear
  View Solution play_arrow

• question_answer82)
  When shares are issued and allotted to a selected group of persons privately and not to the public in general through public issue, it is known as ___________
  A)
  Public Allotment done clear
  B)
  IPO done clear
  C)
  Right issue done clear
  D)
  Private Placement of Shares done clear
  View Solution play_arrow

• question_answer83)
  KK Ltd. invited applications for 10,000 equity shares of Rs.10 each. The whole amount was payable on application. Company has received applications for 8,000 shares only. Because it was less than 90%, Director have decided to cancel this issue and to refund the money to the applicants with the letters of regret. How much amount is to be refunded to the applicants?
  A)
  1,00,000 done clear
  B)
  80,000  done clear
  C)
  90,000 done clear
  D)
  72,000 done clear
  View Solution play_arrow

• question_answer84)
  M Ltd. issued 50,000 shares of Rs.100 each payable Rs.20 on application (on 1st May 2020); Rs.30 on allotment (on 1st August 2020); Rs.20 on first call (on 1st November 2020) and the balance on final call (on 1st January 2021). Shankar, a shareholder holding 5,000 shares did not pay the first call on the due date. The second can was made and Shankar paid the first call amount along with the second call. All sums due were received. Total amount received on 1st January was:
  A)
  15,00,000 done clear
  B)
  16,00,000  done clear
  C)
  10,00,000 done clear
  D)
  11,00,000 done clear
  View Solution play_arrow

• question_answer85)
  Can a company issue shares at discount in its Initial Public Offer (IPO)?
  A)
  Yes only 6% Discount done clear
  B)
  Yes only 10% Discount done clear
  C)
  Yes only 5 % Discount done clear
  D)
  No, company cannot issue its shares at discount done clear
  View Solution play_arrow

• question_answer86)
  Through issue of shares, a company cannot raise fund beyond its __________
  A)
  Nominal Capital done clear
  B)
  Issued Capital done clear
  C)
  Subscribed Capital   done clear
  D)
  Paid-up Capital done clear
  View Solution play_arrow

• question_answer87)
  Private placement of shares may be for:
  A)
  Financial Institutions   done clear
  B)
  Promoters done clear
  C)
  Mutual Fund      done clear
  D)
  All of the above done clear
  View Solution play_arrow

• question_answer88)
  Securities Premium Reserve cannot be utilized for:
  A)
  Buy Back of own shares done clear
  B)
  Writing off preliminary expenses done clear
  C)
  Distribution of Dividend  done clear
  D)
  Issue of fully paid bonus shares done clear
  View Solution play_arrow

• question_answer89)
  Vinod Ltd. purchased assets from Dinesh & Sons for Rs.3,50,000. A sum of Rs.75,000 was paid by means of a bank draft and for the balance due Vinod Ltd. issued equity shares of Rs.10 each at a premium of 10%. No. of shares to be issued to Dinesh & Sons __________
  A)
  20,000 Shares done clear
  B)
  30,000 Shares done clear
  C)
  35,000 Shares done clear
  D)
  25,000 Shares done clear
  View Solution play_arrow

• question_answer90)
  20,000 Shares of Rs.10 each were issued for public subscription at a premium of 10%. Full amount was payable on application. Applications were received for 30,000 shares and the Board decided to make pro-rata allotment. What amount is to be refunded to the applicants?
  A)
  Rs.80,000   done clear
  B)
  Rs.90,000 done clear
  C)
  1,00,000 done clear
  D)
  1,10,000 done clear
  View Solution play_arrow

• question_answer91)
  Which of the following statement is not correct?
  A)
  Securities Premium Reserve cannot be used as working capital. done clear
  B)
  Capital reserve is a reserve created out of the profits of capital nature. done clear
  C)
  Preliminary expenses are those expenses which are incurred for incorporation of a company. done clear
  D)
  It is mandatory to create Reserve Capital. done clear
  View Solution play_arrow

• question_answer92)
  Authorised Share Capital is also known as ________
  A)
  Memorandum of Association done clear
  B)
  Article of Association done clear
  C)
  Nominal Capital done clear
  D)
  Reserve Capital done clear
  View Solution play_arrow

• question_answer93)
  Vinod Ltd invited application for 10,000 Equity Shares of Rs.10 each. Applications were received for 15,000 shares and prorate allotment was made to all the applicants. If Mohan (one shareholder) was allotted 80 shares, find the shares applied by him.
  A)
  80 done clear
  B)
  100 done clear
  C)
  150  done clear
  D)
  120 done clear
  View Solution play_arrow

• question_answer94)
  Vinod Ltd. forfeited 100 Equity shares of Rs.10 each issued at a premium of 20% for non-payment of final call of Rs.5 including premium. State the maximum amount of discount at which these shares can be reissued:
  A)
  300  done clear
  B)
  500 done clear
  C)
  700 done clear
  D)
  800 done clear
  View Solution play_arrow

• question_answer95)
  Vinod Ltd. invited applications for 10,00,000 Equity Shares of Rs.10 each. The public applied for 8,55,000 shares. As per SEBI guidelines, subscription of how many shares other than 8,55,000 shares can fulfill the requirement of minimum subscriptions?
  A)
  55,000 done clear
  B)
  45,000 done clear
  C)
  1,45,000 done clear
  D)
  1,55,000 done clear
  View Solution play_arrow

• question_answer96)
  ______ can be used to write off Capital losses.
  A)
  Reserve Capital done clear
  B)
  Issued Capital done clear
  C)
  Capital Reserve done clear
  D)
  Discount on issue of Sweat Equity Shares done clear
  View Solution play_arrow

• question_answer97)
  Vinod Ltd. purchased a Machinery of Rs.9,00,000 from Vinesh Ltd. payment to be made by issuing Equip Shares of Rs.10 each. Find out number of shares issued to Vinesh Ltd., if share are to be issued at Par.
  A)
  9,000 done clear
  B)
  90,000 done clear
  C)
  10,000 done clear
  D)
  1,00,000 done clear
  View Solution play_arrow

• question_answer98)
  Vinod Ltd. issued 2,000 shares of Rs.10 each, payable Rs.7 on application & allotment; 2 on first call and balance on second call (final call). 100 shares were forfeited on which second call was not received. What is the maximum permissible discount can be offered on reissue of these shares?
  A)
  1 per share  done clear
  B)
  2 per share done clear
  C)
  3 per share done clear
  D)
  9 per share done clear
  View Solution play_arrow

• question_answer99)
  Vinod Ltd. purchased a Machinery of Rs.9,00,000 from Vinesh Ltd. payment to be made by issuing Equity Shares of Rs.10 each. Find out number of shares issued to Vinesh Ltd., if shares are to be issued at a premium of 20%.
  A)
  75,000 done clear
  B)
  90,000 done clear
  C)
  80,000 done clear
  D)
  1,00,000 done clear
  View Solution play_arrow

• question_answer100)
  Vinod Ltd. issued 2,000 shares of Rs.10 each, payable Rs.7 on application & allotment; 2 on first call and balance on final call. 100 shares were forfeited on which first call and second call was not received. What is the maximum permissible discount can be offered on reissue of these shares?
  A)
  1 per share done clear
  B)
  2 per share done clear
  C)
  3 per share done clear
  D)
  9 per share done clear
  View Solution play_arrow

• question_answer101)
  Applications for Equity shares invited by Vinod Ltd. 10,000. Applications received for 15,000 shares. Prorata allotment was made to all the applicants. Mr. Kumar one applicant who had applied for 120 shares. Shares allotted to Mr. Kumar will be_______
  A)
  80 done clear
  B)
  100 done clear
  C)
  120 done clear
  D)
  150 done clear
  View Solution play_arrow

• question_answer102)
  Shares cannot be offered to public by:
  A)
  A Private Ltd. Company done clear
  B)
  A Public Ltd. Company done clear
  C)
  A Non-Banking Company (NBFC) done clear
  D)
  One Person Company done clear
  View Solution play_arrow

• question_answer103)
  50,000 shares of Rs.10 each were issued for public subscription at a premium of 10%. Full amount was payable on application. Applications were received for 75,000 shares and the Board decided to allot the shares on prorata basis. How much amount is to be refunded to the applicants?
  A)
  Nil done clear
  B)
  2,00,000 done clear
  C)
  2,50,000 done clear
  D)
  2,75,000 done clear
  View Solution play_arrow

• question_answer104)
  Vinod Ltd. is registered with 50,000 Equity shares of Rs.10 each. Out of which it has offered to the general public 40,000 shares @ Rs.10 each. Shares (10,000) which are not issued by the company are called:
  A)
  Issued Capital done clear
  B)
  Unissued Capital done clear
  C)
  Reserve Capital done clear
  D)
  Paid up Capital done clear
  View Solution play_arrow

• question_answer105)
  Vinod Ltd. offered 10,000 shares to the public @ 10 each. Applications were received for 15,000 shares. Directors decided to allot shares to all the applicants. This allotment is called :
  A)
  Under-Subscription done clear
  B)
  Uncalled Capital done clear
  C)
  Reserve Capital done clear
  D)
  Pro-rata Allotment done clear
  View Solution play_arrow

• question_answer106)
  Maximum limit of 'Securities Premium' on issue of shares is:
  A)
  5% done clear
  B)
  10% done clear
  C)
  No limit done clear
  D)
  Not more than 100% done clear
  View Solution play_arrow

• question_answer107)
  When a company issue its share through IPO, it means shares are issued to:
  A)
  Promoters  done clear
  B)
  Creditors  done clear
  C)
  Vendors done clear
  D)
  General Public done clear
  View Solution play_arrow

• question_answer108)
  Vinod Ltd. Forfeited 200 shares of Rs.10 each fully called up held by X for no payment of allotment rnoney of Rs.3 per share & Final call of Rs.4 per share. He paid the application money of Rs.3 per share. These shares were reissued to Y for Rs.8 per shares. Journal entry for the transfer of Gain on reissue to Capital Reserve will be:
  A)

  Share Forfeiture A/c	Dr.	200
  To Capital Reserve			200

    done clear
  B)

  Share Forfeiture A/c	Dr.	300
  To Capital Reserve			300

    done clear
  C)

  Share Forfeiture A/c	Dr.	400
  To Capital Reserve			400

    done clear
  D)

  Share Forfeiture A/c	Dr.	800
  To Capital Reserve			800

    done clear
  View Solution play_arrow

• question_answer109)
  Vinod Ltd. invited application for 10000 shares of the value of Rs.10 each. The amount is payable as Rs.2 on application and Rs.2 on allotment and balance on First and Final call. The whole of the above issue was applied and cash duly received. Journal entry for the application money received :
  A)

  Bank Account	Dr.	20,000
  To Share Application A/c			20,000

    done clear
  B)

  Bank Account	Dr.	2000
  To Share Application A/c			2000

    done clear
  C)

  Bank Account	Dr.	20000
  To Share Allotment A/c			20000

    done clear
  D)

  Share Application	Dr.	20000
  To Share Allotment A/c			20000

    done clear
  View Solution play_arrow

• question_answer110)
  X Ltd. Forfeited 200 shares of Rs.10 each fully called up held by Vinod for no payment of allotment money of Rs.3 per share & Final call of Rs.4 per share. He paid the application money of Rs.3 per share. These shares were reissued to Yuvraj for Rs.8 per shares. Reissue Entry of forfeited shares:
  A)

  Bank Account	Dr.	1600
  Forfeited Shares Account	Dr.	400
  To Share Capital Account			2000

    done clear
  B)

  Bank Account	Dr.	1600
  Share Capital Account	Dr.	400
  To Share Forfeited Account			2000

    done clear
  C)

  Bank Account	Dr.	1600
  Forfeited Share Account	Dr.	400
  To Share Capital Account			2000

    done clear
  D)

  Share Account	Dr.	1600
  Forfeited Shares Account	Dr.	400
  To Share Capital Account			2000

    done clear
  View Solution play_arrow

• question_answer111)
  Vinod Ltd. Purchased a running business from Tata Ltd. for a sum of Rs.22,00,000 by issuing 20,000 fully paid Equity Shares of Rs.100 each at a premium of 10%. Total Assets were Rs.26,00,000 and Bills payable Rs.2,50,000. Amount of Goodwill/Capital Reserve will be:
  A)
  4,00,000 Capital Reserve done clear
  B)
  4,00,000 Goodwill done clear
  C)
  1,50,000 Capital Reserve done clear
  D)
  1,50,000 Goodwill done clear
  View Solution play_arrow

• question_answer112)
  VK Ltd. Purchased a running business from Tata Ltd. for a sum of Rs.22,00,000 by issuing 20,000 fully paid Equity Shares of Rs.100 each at a premium of 10%. Total Assets were Rs.25,00,000 and Bills payable Rs.2,50,000. Number of Shares to be issued:
  A)
  10,000 done clear
  B)
  15,000 done clear
  C)
  20,000 done clear
  D)
  25,000 done clear
  View Solution play_arrow

• question_answer113)
  X Ltd. purchased Machinery of Rs.10,00,000 from Y Ltd. and paid 20% of the amount by accepting a bill of exchange in favour of Y Ltd. The remaining amount was paid by issuing Equity Shares of Rs.100 each at a premium of 25% to Y Ltd. Number of Shares to be issued:
  A)
  6,200 done clear
  B)
  6,300 done clear
  C)
  6,500 done clear
  D)
  6,400 done clear
  View Solution play_arrow

• question_answer114)
  King Ltd. took over the assets of Rs.14,00,000 and liabilities of Rs.4,00,000 from Queen Ltd. for a purchase consideration of Rs.9,19,000. King Ltd. issued a promissory note of Rs.17,000 payable after 60 days in favour of Queen Ltd. and the balance amount was paid by issue of Equity Shares of Rs.100 each at a premium of Rs.25 per share. Number of Shares to be issued:
  A)
  7,216 done clear
  B)
  8,216 done clear
  C)
  7,600 done clear
  D)
  9,216 done clear
  View Solution play_arrow

• question_answer115)
  Yash Ltd. took over the assets of Rs.4,80,000 and Liabilities of Rs.80,000 of Raj Ltd. for a consideration of Rs.3,20,000. An amount of Rs.20,000 paid by an acceptance in favour of Raj Ltd. payable after 3 months and the balance by issue of equity shares of Rs.100 each at a premium of 50%. Number of Shares to be issued:
  A)
  1,800 done clear
  B)
  2,000  done clear
  C)
  2,200 done clear
  D)
  2,400 done clear
  View Solution play_arrow

• question_answer116)
  When a company grants option to its employees to subscribe the shares at a price that is lower than the market price, this situation is called_________
  A)
  Preferential Allotment done clear
  B)
  Private Placement of Shares done clear
  C)
  Employees Stock Option Plan (ESOP) done clear
  D)
  Bonus Shares Issued to Employee done clear
  View Solution play_arrow

• question_answer117)
  Identify the wrong statement from the following:
  A)
  Employee Stock Option Plan is an option or a right granted by the company done clear
  B)
  Employee Stock Option Plan is not an obligation on employees to subscribe the shares done clear
  C)
  Employees may or may not accept the option of subscription done clear
  D)
  Employee Stock Option Plan is completely different from Sweat Equity Shares done clear
  View Solution play_arrow

• question_answer118)
  Papa Ltd. offered to the public for subscription 80,000 Equity Shares payable per share as: 5 on Application & Allotment; Rs.3 on First Call and Balance on Second and Final Call. The issue was fully subscribed and all amounts due were received except both calls money on 2,000 shares. These shares were forfeited. Amount of Share Capital to be shown in the Balance Sheet:
  A)
  7,90,000 done clear
  B)
  7,80,000 done clear
  C)
  7,60,000 done clear
  D)
  8,00,000 done clear
  View Solution play_arrow

• question_answer119)
  Mother Ltd. invited application for 70,000 shares @ 30 each at par and received applications for only 68,000 shares. All calls were made and duly received except the final call of Rs.10 per share on 5,000 shares. These shares were forfeited. Amount of Share Capital to be shown in the Balance Sheet:
  A)
  21,00,000 done clear
  B)
  20,50,000 done clear
  C)
  19,50,000 done clear
  D)
  19,90,000 done clear
  View Solution play_arrow

• question_answer120)
  Which of the following term will clearly 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)
  Bonus Shares done clear
  D)
  Refund of Money done clear
  View Solution play_arrow

• question_answer121)
  Vinod Ltd. had allotted 10,000 shares to the applicants of 13,000 shares on pro-rata basis. The amount payable on application was Rs.3 per share. Yash one shareholder who applied for 520 shares. How many shares were allotted to him and how much of his excess amount adjusted towards allotment?
  A)
  Allotted 400 Shares and adjusted on allotment Rs.400 done clear
  B)
  Allotted 360 Shares and adjusted on allotment Rs.400 done clear
  C)
  Allotted 400 Shares and adjusted on allotment Rs.1,200 done clear
  D)
  Allotted 400 Shares and adjusted on allotment Rs.360 done clear
  View Solution play_arrow

• question_answer122)
  If the Premium on the forfeited shares has already been received, at the tune of forfeiture of shares, Securities Premium Reserve Account will be:
  A)
  Fully Debited done clear
  B)
  Fully Credited done clear
  C)
  No Treatment done clear
  D)
  Only received amount will be debited done clear
  View Solution play_arrow

• question_answer123)
  Yes Ltd. issued 2,50,000 Equity Shares of Rs.10 each at a premium of Re.3 each payable as Rs.7 on Application & Allotment (including premium) and balance on First and final call. Applications were received for 3,50,000 shares and company allotted them 2,50,000 shares. Excess money was applied towards Call. Last call on 1,000 shares not received and these shares were forfeited. Which of the following is not part of the above situation?
  A)
  Over-subscription done clear
  B)
  Pro-rata Allotment done clear
  C)
  Forfeiture of Shares done clear
  D)
  Under Subscription done clear
  View Solution play_arrow

• question_answer124)
  What amount is shown in the 'Forfeiture Account' at the time of forfeiture of shares?
  A)
  Application money paid by the shareholder including premium done clear
  B)
  Amount not paid by the shareholder on application and allotment done clear
  C)
  Total amount paid by the shareholder including amount utilised on premium done clear
  D)
  Total amount paid by the shareholder excluding the amount utilised on premium done clear
  View Solution play_arrow

• question_answer125)
  Vinod Limited issued 2,000 Equity Shares of Rs.100 each as fully paid-up in consideration of the purchase of Plant and Machinery worth Rs.2,00,000. What entry will be recorded in company's Journal?
  A)
  Plant and Machinery A/c Dr. and Share Capital A/c Cr. with 2,00,000. done clear
  B)
  Vendor's A/c Dr. and Plant and Machinery A/c Cr. with 2,00,000 done clear
  C)
  Vendor's A/c Dr. and Share Capital A/c Cr. With 1,50,000 done clear
  D)
  Vendor's A/c Dr. and Share Capital A/c Cr. With 2,00,000 done clear
  View Solution play_arrow

• question_answer126)
  A company forfeited 800 equity shares of Rs.10 each issued at par for non-payment of two calls of Rs.2 each. What will be the amount of forfeiture account ?
  A)
  Share Forfeiture A/c 5,600 done clear
  B)
  Share Forfeiture A/c 6,400 done clear
  C)
  Share Forfeiture A/c 4,800 done clear
  D)
  Share Forfeiture A/c 4,000 done clear
  View Solution play_arrow

• question_answer127)
  Vinod Limited forfeited 100 equity shares of Rs.10 each issued at a premium of 20% for non-payment of final call of Rs.5 including the premium. What amount will be shown by Share Forfeiture A/c?
  A)
  Share Forfeiture A/c 800 done clear
  B)
  Share Forfeiture A/c 700 done clear
  C)
  Share Forfeiture A/c 600  done clear
  D)
  Share Forfeiture A/c 500 done clear
  View Solution play_arrow

• question_answer128)
  Vinod Ltd. purchased a machine from Luxmi Machines Ltd. for Rs.3,80,000. As per purchase agreement Rs.20,000 were paid in cash and balance by issue of shares of Rs.100 each. How many shares to be issued to Luxmi Machines Ltd. if shares are issued at a premium of 20%?
  A)
  4,000 done clear
  B)
  3,000 done clear
  C)
  3,800 done clear
  D)
  3,600 done clear
  View Solution play_arrow

• question_answer129)
  Vinod Limited offered 10,000 shares of Rs.10 each for public subscription at a premium of 10%. Full amount was payable on application. Applications were received for 15,000 shares and the Board decided to allot the shares on pro-rata basis. How much amount is to be refunded?
  A)
  60,000   done clear
  B)
  50,000 done clear
  C)
  45,000 done clear
  D)
  55,000 done clear
  View Solution play_arrow

• question_answer130)
  Vinod Limited purchased machinery for Rs.30,00,000 from Suraj Limited. Half of the amount was paid by accepting a 'Bill of Exchange' drawn by Suraj Limited, payable after 3 months. The balance was paid by issue of Equity Shares of Rs.10 each at a premium of 25%. How many shares are to be issued?
  A)
  1,00,000 Shares done clear
  B)
  1,20,000 Shares done clear
  C)
  1,50,000 Shares done clear
  D)
  1,80,000 Shares done clear
  View Solution play_arrow

• question_answer131)
  Vinod Limited purchased Furniture for Rs.4,05,000 from Kisan Limited. The payment was made by issue of Equity Shares of Rs.10 each. How many shares are to be issued?
  A)
  50,000 Shares  done clear
  B)
  40,000 Shares  done clear
  C)
  40,500 Shares  done clear
  D)
  35,000 Shares done clear
  View Solution play_arrow

• question_answer132)
  What correct order of Capitals is followed, while preparing Notes to Account to find out the amount of Share capital to be shown in Balance Sheet?
  A)
  Subscribed Capital, Issued Capital, Authorised Capital done clear
  B)
  Issued Capital, Authorised Capital, Subscribed Capital done clear
  C)
  Authorised Capital, Subscribed Capital, Issued Capital done clear
  D)
  Authorised Capital, Issued Capital, Subscribed Capital done clear
  View Solution play_arrow

• question_answer133)
  Purchase Consideration is the amount paid by the purchasing company for buyuig assets or business of other company.
  A)
  True done clear
  B)
  False done clear
  View Solution play_arrow

• question_answer134)
  Employee Stock Option Plan is a category of 'Sweat Equity'
  A)
  True done clear
  B)
  False done clear
  View Solution play_arrow

• question_answer135)
  Private Placement of Shares, means, General Public has no link with it.
  A)
  True   done clear
  B)
  False done clear
  View Solution play_arrow

• question_answer136)
  The portion of uncalled capital, which can be called up only on the winding up of the company is called Reserve Capital.
  A)
  True done clear
  B)
  False done clear
  View Solution play_arrow

• question_answer137)
  Issued capital can be less or equal to Authorised capital but cannot be more than the Authorised Capital.
  A)
  True done clear
  B)
  False done clear
  View Solution play_arrow

• question_answer138)
  Amount of Calls in Arrears is not shown in the Balance Sheet directly, it is deducted from the subscribed capital while preparing notes to accounts for share capital.
  A)
  True done clear
  B)
  False done clear
  View Solution play_arrow

• question_answer139)
  At the time of forfeiture of shares, the share capital account is debited with the Called-Up Amount.
  A)
  True done clear
  B)
  False done clear
  View Solution play_arrow

• question_answer140)
  Minimum Subscription limit of at least 90% of the shares issued, is fixed by the SEBI and not by the Companies Act, 2013.
  A)
  True done clear
  B)
  False done clear
  View Solution play_arrow

• question_answer141)
  Gagan Ltd. reissued 800 (80% of the Forfeited shares) equity shares of Rs 10 each which were forfeited due to non-payment of allotment money and first and final call, now reissued for Rs.12 each fully paid up at premium. Amount transferred to capital Reserve Rs.4,800. What was the amount credited to Share Forfeiture A/c at the time of forfeiture of shares:
  A)
  Rs.6,000 done clear
  B)
  Rs.4,800  done clear
  C)
  Rs.9,600  done clear
  D)
  Rs.3,840 done clear
  View Solution play_arrow

• question_answer142)
  Gagan Ltd. reissued 900 (75% of Forfeited shares) equity shares of Rs.10 each on non-payment of allotment money and first and final call, now reissued for Rs.7,200 fully paid up. Amount transferred to capital Reserve Rs.6,300. What was the amount credited to share forfeiture A/c at the time of forfeiture of shares:
  A)
  Rs.6,000 done clear
  B)
  Rs.8,100 done clear
  C)
  Rs.10,800 done clear
  D)
  Rs.6,300 done clear
  View Solution play_arrow

• question_answer143)
  Gagan Ltd. invited applications of 45,000 Equity Shares of Rs.10 each at a Premium of 40%. Company received applications for 60,000 shares. Amount payable as follows: on Application Rs.7 (including premium of Rs.2), on Allotment Rs.3(including premium of Rs.1), Balance on first and final call. One shareholder Megha who applied for 600 shares failed to pay allotment and first and final call money. Amount of share forfeiture (credited at the time of forfeiture of shares):
  A)
  3,300 done clear
  B)
  2,250 done clear
  C)
  3,150 done clear
  D)
  4,200 done clear
  View Solution play_arrow

• question_answer144)
  Nyra Ltd. issued 20,000 Equity Shares of Rs.100 each. Amount payable as follows; Application Rs.60; Allotment Rs.20 and balance on first and final call. Company received an amount of Rs.3,60,000 on allotment. Calculate number of shares on which allotment money is not Received.
  A)
  400 shares done clear
  B)
  2,000 shares done clear
  C)
  6,000 shares done clear
  D)
  20,000 shares done clear
  View Solution play_arrow

• question_answer145)
  Nyra Ltd. issued 10,000 Equity Shares of Rs.10 each at a premium of 20%. Company has forfeited 250 shares on non-payment of allotment amount of Rs.5 (including premium), first and final call of Rs.3 is not yet called up. Calculate the amount to be shown in call-in-arrears account at the time of forfeiture of shares?
  A)
  2,500 done clear
  B)
  2,000 done clear
  C)
  1,250 done clear
  D)
  1,750 done clear
  View Solution play_arrow

• question_answer146)
  Gagan Ltd. forfeited 600 shareson non-payment of Allotment amount, final call is not yet called up. Amount payable as : On Application Rs.40 (including full premium of Rs.10); Allotment Rs.40; first and final call 30. At the time of forfeiture of shares, Share Capital Account is to be debited with the called up amount per share_______.
  A)
  30 done clear
  B)
  80 done clear
  C)
  70 done clear
  D)
  100 done clear
  View Solution play_arrow

• question_answer147)

  GN Ltd forfeited 400 shares of Rs.10 each at a premium of 40%, on which only application money has been received.

  Amount was payable as follows:

  On Application ................................................................... Rs.6 (including premium of Rs.2)

  On Allotment......................................................................... Rs.5 (Including premium of Rs.1)

  Balance ..................................................,.,............................ on First and final call

  Securities Premium is to be debited by Rs._______ (at the time of forfeiture of shares)

  A)
  Debited by Rs.400 done clear
  B)
  Credited by Rs.800 done clear
  C)
  Debited by Rs.1,600 done clear
  D)
  Debited by Rs.800 done clear
  View Solution play_arrow

• question_answer148)
  Nyra Ltd. forfeited 500 shares of Rs.10 each. Out of these forfeited shares 250 were reissued at Rs.3,000. Calculate the Reissue price per share.
  A)
  Rs.12 done clear
  B)
  Rs.6 done clear
  C)
  Rs.10  done clear
  D)
  Rs.25 done clear
  View Solution play_arrow

• question_answer149)
  GN Ltd. acquired a running business of Vinod Ltd. consisting Assets of Rs.20,00,000 and creditors of Rs.2,00,000, Bills Payable of Rs.3,00,000. Purchase consideration is settled by a Bank draft of Rs.4,00,000 and Rs.1,00,000 Equity Shares of Rs.10 each at a premium of Rs.2. Amount of Goodwill/capital Reserve at the time of purchase of business______
  A)
  Goodwill Rs.1,00,000 done clear
  B)
  Capital Reserve Rs.1,00,000 done clear
  C)
  No Goodwill/No Capital Reserve done clear
  D)
  Capital Reserve Rs.3,00,000 done clear
  View Solution play_arrow

• question_answer150)
  Gagan Ltd. invited applications of 45,000 Equity Shares of Rs.10 each at a premium of Rs.4. Company received applications of 15,000 in excess. Amount payable as follows: on Application Rs.7 (including premium of Rs.2), on Allotment Rs.3 (including premium of Rs.1), Balance on first and final call. One shareholder Megha who applied for 600 shares failed to pay allotment and first and final call money. Amount of Securities Premium to be debited at the time of forfeiture of shares?
  A)
  Debited by Rs.900 done clear
  B)
  Debited by Rs.6500 done clear
  C)
  Debited by Rs.450 done clear
  D)
  Debited by Rs.750 done clear
  View Solution play_arrow

• question_answer151)
  Aryan Ltd. purchased a running business of GN Ltd. consisting Assets of Rs.30,00,000 and liabilities of Rs.5,00,000 at a purchase consideration of Rs.23,00,000. Amount of Capital Reserve/Goodwill at the time of purchase of business______
  A)
  Rs.2,00,000 Goodwill done clear
  B)
  Rs.2,00,000 Capital Reserve done clear
  C)
  Rs.4,00,000 capital Reserve done clear
  D)
  Rs.5,00,000 Goodwill done clear
  View Solution play_arrow

• question_answer152)

  Aditya Ltd Purchased Machinery from Gagan Ltd. by paying as follows:

  Through Bank Draft........................................................ Rs.3,00,000

  Through Bills Payable.................................................... Rs.1,00,000

  Remaining balance through 40,000 Equity Shares of Rs.10 each at a premium of Rs.2.

  Amount of Purchase consideration was________.

  A)
  8,80,000 done clear
  B)
  8,00,000 done clear
  C)
  7,20,000  done clear
  D)
  7,00,000 done clear
  View Solution play_arrow

• question_answer153)
  Gagan Ltd. Reissued 600shares (50% of forfeited shares) of Rs.20 each, at Rs.16 fully paid up. Amount transferred to capital reserve Rs.3,600. Share Forfeiture Account will be credited with Rs.__________ (at the time of forfeiture)
  A)
  2,400 done clear
  B)
  6,000 done clear
  C)
  12,000 done clear
  D)
  2,400 done clear
  View Solution play_arrow

• question_answer154)
  Choose the incorrect option from the following:
  A)

  Bank A/c	Dr.
  Calls-in Arrears A/c	Dr.
  To First and Final Call A/c
  (Being First and Final call received except on 200 shares)

    done clear
  B)

  Bank A/c	Dr.
  To Share Allotment A/c
  To Calls-in-Advance A/c
  (Being Allotment money received with first and final call on 200 shares)

    done clear
  C)

  Share Application A/c	Dr.
  To Share Allotment A/c
  To Share Capital A/c
  To Bank A/c
  (Being Application money adjusted)

    done clear
  D)

  Share Capital A/c	Dr.
  To Bank A/c
  To Share Forfeiture
  (Being reissue of forfeited shares)

    done clear
  View Solution play_arrow

• question_answer155)
  Nanak Ltd. invited application for 50,000 equity shares of Rs.10 each at a premium of 60%. Whole amount was payable on application. The issue was over-subscribed by 2.5 times of the issue. 25,000 applications were rejected and money was refunded with a letter of regret. Total amount refunded by the company _____
  A)
  2,50,000 done clear
  B)
  4,00,000  done clear
  C)
  12,00,000 done clear
  D)
  7,50,000 done clear
  View Solution play_arrow