MCQ Questions for Class 12 Commerce Accountancy Accounting For Share Capital Quiz 1

Share or Security Premium can be used for writing off _____________.

0%
loss on sale of assets
0%

preliminary expenses
0%
bad debts
0%
both B and C

Explanation

As per section

$52(2)$ of the Companies Act,

$2013$ , Share or Security Premium can be used for writing off Preliminary Expenses. It cannot be used either for writing off loss on sale assets or bad debts. Therefore, correct answer is B.

Which of the following is incorrect as to a share?

0%
It has a nominal value
0%
It has a distinct number
0%
It may be transferred in fractions
0%
All shares of a class are of equal denominations

A sends goods to B of Delhi, the goods are to be sold at 125% of cost which is invoice price. Commission is 10% on sales at invoice price and 25% of any surplus realized above IP. 10% of the goods sent out on consignment, invoice value of which is Rs 12,500, were destroyed. 75% of the total consignment is sold by B at Rs 1,00,What will be the amount of commission payable to B?

0%
Rs 10,937-50
0%
Rs 16,250
0%
Rs 10,000
0%
Rs 9,700

While making an adjusting entry in respect of interest on capital, we credit __________________.

0%
Interest on capital account
0%
Capital account
0%
Profit and loss account
0%
Drawing account

A company has issued

$15,000$ shares of

$Rs. 10$ each. The amount has been demanded as under:
On Application -

$Rs. 3$ . On Allotment -

$Re. 1$
On

$1st$ Call -

$Rs. 4$ . On

$2nd$ and Final Call -

$Rs. 2$ .
A shareholder holding

$500$ shares did not pay

$1st$ and

$2nd$ call money. His shares have been forfeited. These shares have been reissued @

$Rs. 9$ . The amount transferred to Capital Reserve is

0%
$Rs. 1,000$
0%
$Rs. 1,500$
0%
$Rs. 3,000$
0%
$Rs. 2,000$

Explanation

Amount received on forfeited shares

$(500\times 4) = Rs. 2,000$ will be credited to shares forfeited account on forfeiture of shares. Out of this

$Rs. 500$ will be debited to share forfeiture account being discount on reissue of these shares. Balance of share forfeited account

$(2000 - 500) = Rs. 1,500$ will be transferred to Capital Reserve. Therefore, correct answer is B.

A shareholder who can vote conditionally he is ____________.

0%
equity shareholder
0%
preference shareholder
0%
member
0%
none of the above.

A company cannot issue irredeemable preference shares.

0%
True
0%
False

The balance in the deceased partner's capital account is transferred to the _________capital account.

0%
Solvent Partners
0%
Insolvent Partners
0%
Representative of Deceased Partner
0%
New Partners

A and B enter into a joint venture to underwrite shares of K Ltd. K Ltd. make an equity issue of 100,000 equity shares. 80% of the shares underwritten by the venturer. 80,000 shares are subscribed by the public. How many shares are to be subscribed by the venture?

0%
Nil
0%
16,000
0%
18,000
0%
None

Share Application Account is in the nature of ______________.

0%
nominal account
0%
personal account
0%
real account
0%
none of these

Which of the following statements is false?

0%
Shares can be issued for cash or for any other consideration.
0%
In the event of over-subscription, excess amount of application has to be either refunded or a pro-rata allotment is made.
0%
SEBI guideline are applicable for issue of shares.
0%
The share application money is automatically converted to share capital.

When shares are issued to promoters for their services, the account that will be debited is ______________.

0%
Preliminary Expenses A/c
0%
Goodwill A/c
0%
Promoters A/c
0%
Share Capital A/c

The discount allowed on reissue of forfeited shares is debited to _________________.

0%
General reserve account
0%
Capital reserve account
0%
Revaluation reserve account
0%
None of these

A company can not issue following kinds of shares _____________.

0%
Redeemable equity shares
0%
Irredeemable preference shares
0%
Equity shares with differential voting rights
0%
Redeemable preference shares

The part of share capital, which can be called up only on the winding up of a company, is called __________________.

0%
Authorised Capital
0%
Called up Capital
0%
Sacrificing ratio gaining ratio
0%
Reserve Capital

The maximum rate of premium at which shares can be issued is ________________.

0%
$5$ %
0%
$10$ %
0%
$15$ %
0%
There is no limit

The maximum amount beyond which a company is not allowed to raise funds, by issue of shares, is its _______________.

0%
Issued Capital
0%
Reserve Capital
0%
Authorised Capital
0%
Subscribed Capital

Shares of a private company can be sold through __________________.

0%
Private circulation
0%
Stock exchange
0%
Private circulation and exchange
0%
None of these

The excess amount received over the called amount of shares is credited to ________________.

0%
Calls-in-advance account
0%
Share capital account
0%
Capital Reserve account
0%
Share of security premium account

For which of the following purposes share premium of the company can not be used in case the company issues share at premium?

0%
For writing off loss as sale and assets.
0%
For the issue of fully paid bonus shares to the members of the company.
0%
For writing off preliminary expenses of the company.
0%
For providing premium payable on the redemption of any redeemable preferences shares or debentures of the company.

X, who holds

$100$ shares of

$Rs. 10$ each, fails to pay final call of

$Rs. 2$ per share. The directors forfeited all the shares and subsequently reissued

$50$ shares of

$Rs. 10$ each as fully paid on payment of

$Rs. 4$ per share. The amount to be transferred to Capital Reserve would be _______________.

0%
$Rs. 200$
0%
$Rs. 100$
0%
$Rs. 400$
0%
$Rs. 500$

D Ltd. forfeited

$200$ shares of

$Rs. 10$ each,

$Rs. 7$ called up on which Ram had paid only application money

$Rs. 3$ per share. Of these,

$125$ shares was reissued to Shyam for

$Rs. 9$ per share fully paid. What will be balance in the Share Forfeited A/c after reissue of

$125$ shares?

0%
$Rs. 225$
0%
$Rs. 600$
0%
$Rs. 525$
0%
$Rs. 450$

Dividends are usually paid on ___________.

0%
Authorised capital
0%
Issued capital
0%
Called-up capital
0%
Paid-up capital

Which of the following is false?

0%
Loss on reissue of shares cannot be more than the gain on forfeiture of those shares.
0%
Where all the forfeited shares are not reissued, the share forfeited account will show a credit balance equal to gain on forfeiture of shares not yet issued.
0%
When the shares are forfeited, share premium is debited along with share capital where premium has not been received.
0%
Where forfeited shares are issued at premium, the amount of such premium is credited to capital reserve account.

A company has issued shares of

$Rs. 10$ each at a premium of

$Rs. 2$ each. The whole amount has been called up but shares were forfeited for non-payment of

$Rs. 4$ . On forfeiture share capital account will be debited by _____________.

0%
$Rs. 12$
0%
$Rs. 10$
0%
$Rs. 8$
0%
$Rs. 4$

Which one of the following statements regarding forfeiture of shares is not correct?

0%
Forfeited shares may be reissued at a discount or at a premium
0%
The title of the new purchaser is not affected by any irregularity in the forfeiture or sale of the shares
0%
Return of allotment of reissued of forfeited shared is filed with the Registrar of Companies
0%
Board may consider the request from the defaulting ex-shareholder for the cancellation of forfeiture before the disposal of forfeited shares

A company forfeited

$30$ equity shares of

$Rs.10$ each fully called up, for non-payment of allotment money of

$Rs. 4$ each. If these shares are reissued at

$Rs. 7$ per share fully paid, the amount transferable to Capital Reserve will be _______________.

0%
$Rs. 300$
0%
$Rs. 60$
0%
$Rs. 90$
0%
$Rs. 30$

On the above question, if Shyam had been allotted

$350$ shares, how many shares he would have applied for?

0%
$300\ shares$
0%
$400\ shares$
0%
$420\ shares$
0%
$425\ shares$

Z Ltd. Forfeited

$20$ shares of

$Rs. 10$ each, on which

$Rs. 4$ per share were paid. What is the minimum price of reissue of these shares are fully paid up?

0%
$Rs. 200$
0%
$Rs. 120$
0%
$Rs. 80$
0%
$Rs. 20$

A company forfeited

$1,000$ shares of

$Rs. 10$ each (which were issued at par) held by Mr. John 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 will be ________________.

0%
$Rs. 5,000$
0%
$Rs. 4,000$
0%
$Rs. 1,000$
0%
$Rs. 9,000$

X Ltd. forfeited

$30$ shares of

$Rs. 10$ each fully called-up for non-payment of allotment of

$Rs. 3$ per share and call money of

$Rs. 4$ per share. These shares are reissued for

$Rs. 8$ per share fully paid. What is the amount to be transferred to Capital Reserve Account?

0%
$Rs. 300$
0%
$Rs. 60$
0%
$Rs. 30$
0%
$Rs. 90$

A Ltd. issued shares of

$Rs. 10$ each at a discount of

$10$ %. Mr. B purchased

$60$ shares and paid

$Rs. 2$ on application but did not pay the allotment money of

$Rs. 3$ . If the company forfeited his entire shares, the forfeiture account will be credited by _____________.

0%
$Rs. 180$
0%
$Rs. 162$
0%
$Rs. 120$
0%
$Rs. 1.8$

Use the following information for questions given ahead:
B Ltd. was registered with a share capital of

$Rs. 2,00,00,000$ divided into equity shares of

$Rs. 10$ each. It issued

$Rs. 1,80,00,000$ equity shares to the general public at par payable as to

$Rs. 3$ on application,

$Rs. 3$ on allotment and balance in

$2$ equal calls. The public had subscribed for

$17,00,000$ shares. Till

$31st$ March,

$2006$ , only first call had been made. All the shareholders had paid up except Mr. C, a holder of

$50,000$ shares, who did not pay the call money.
B Ltd.'s Called-up Capital will be _______________.

0%
$Rs. 1,00,00,000$
0%
$Rs. 90,00,000$
0%
$Rs. 1,70,00,000$
0%
$Rs. 1,36,00,000$

A company forfeited

$100$ shares of

$Rs. 10$ each owing to the default in the payment of share call money of

$Rs. 5$ each. These shares were issued at

$Rs. 10$ each, payable at

$Rs. 2$ on application,

$Rs. 5$ on allotment and the balance of

$Rs. 5$ on call. The shares were then reissued to another shareholder at a price of

$Rs. 7$ per share.
The amount to be debited to forfeited shares account on account of discount on re-issue of shares would be ______________.

0%
$Rs. 100$
0%
$Rs. 300$
0%
$Rs. 400$
0%
$Rs. 500$

TV Ltd. Had allotted 10,000 share to the applicants

of 14,000 shares on pro-rata basis. The amount payable on application is X

applied for 420 shares. The number of shares allotted and the amount carried

forward for adjustment against allotment money due from X=?

0%
60 shares; 120
0%
300 shares; 160
0%
320 shares; 200
0%
300 shares; 240

If on a share of

$Rs. 100$ where called up capital is

$Rs. 90$ , while the company received

$Rs. 80$ , the Capital Account should be credited with _____________.

0%
$Rs. 100$
0%
$Rs. 90$
0%
$Rs. 80$
0%
$Rs. 70$

Consider the following information pertaining to the issue of shares of a company. The company issued shares of

$Rs. 10$ each at a premium of

$Rs. 2$ payable as:
On application

$Rs. 3$ ; On allotment

$Rs. 4$ (including premium); On first call

$Rs. 3$ ; On second and final call

$Rs. 2$ .
Mrs. A who holds

$200$ shares failed to pay the first call money. The company has forfeited these shares after the first call. On forfeiture, the amount debited to share capital account is ______________.

0%
$Rs. 2,400$
0%
$Rs. 2,000$
0%
$Rs. 1,600$
0%
$Rs. 1,400$

Z Ltd. issued

$20,000$ shares of

$Rs. 10$ each. The called up value per share was

$Rs. 8$ . The company forfeited

$300$ shares of Mr. A for non-payment of

$1st$ call money of

$Rs. 2$ per share. He paid

$Rs. 6$ for application and allotment money. On forfeiture, the share capital account will be _________________.

0%
Debited by $Rs. 2,400$
0%
Debited by $Rs. 2,000$
0%
Credited by $Rs. 1,800$
0%
Debited by $Rs. 2,200$

The directors of a company resolve to forfeit

$1000$ Equity Shares of

$Rs. 10$ each,

$Rs. 7.50$ paid up.

$700$ of these shares were reissued at

$Rs. 7.00$ per share. The amount to be transferred to Capital Reserve would be ______________.

0%
$Rs. 2,500$
0%
$Rs. 5,400$
0%
$Rs. 3,750$
0%
$Rs. 3,150$

State with the reasons whether the following statements are True or False:
Regret letter is often sent to the members.

0%
True
0%
False

Dividends are usually paid as a percentage of:

0%
Authorised share capital
0%
Net profit
0%
Paid-up capital
0%
Called-up capital

The capitals of X, Y and Z are Rs. 1,00,000; Rs. 75,000 and Rs. 50,000; profits are shared jn the ratio of 3 : 2 :Y retires on the basis of firm purchased by other partners. The new ratio between X and Z is 3 :Find the capital of X and Z.

0%
Rs. 1,50,000 and Rs. 1,00,000
0%
Rs. 1,46,250 and Rs. 42,000
0%
Rs. 1,56,250 and Rs.68,750
0%
Rs. 86,250 and Rs. 46,250

A and B enter into a Joint Venture sharing profits and losses in the ratio 3 :A purchased good costing 2,00,Other expenses of A 10,B sold the goods for 1,80,Remaining goods were taken over by B at 20,The amount of final remittance to be paid by B to A will be:

0%
2,15,000
0%
2,05,000
0%
2,10,000
0%
None of these

Which of the following can be treated as type of shares?

0%
Equity shares
0%
Preference share
0%
Both (A) & (B)
0%
None of the above

The interest on calls-in-advance is paid for the period from the _________.

0%
Date of receipt of application money to the date of appropriation
0%
Date of receipt of allotment money to the date of appropriation
0%
Dale of receipt of advance to the date of appropriation
0%
Date of appropriation to the date of dividend payment

There are 20,000 Preference Shares of Rs 10, on which only Rs 8 has been called up. Company wants to redeem these shares. Company has received different advices. Which of the following advices is correct?

0%
Company cannot redeem preference shares
0%
Can redeem preference shares
0%
Company should make the final call @ Rs 2 and make shares fully paid up, and then preference shares may be redeemed.
0%
None of these

The minimum amount that should be called by a company with application for its shares is the following per cent of face value of shares.

0%
2%
0%
5%
0%
10%
0%
15%

Equity shareholders are____.

0%
Entitled to dividend at a fixed rate
0%
Not entitled to dividend at a fixed rate
0%
Entitled to dividend prior to payment of dividend to preference shareholder
0%
All of the above

According to Section 78 of the Companies Act, the amount in the Securities Premium A/c cannot be used for the purpose of _________________.

0%
Issue of fully paid bonus shares
0%
Writing off losses of the company
0%
Writing off preliminary expenses
0%
Writing off commission or discount on issue of shares

Which of the following is not true?

0%
Loss on reissue of shares cannot be more than the gain on forfeiture of those shares.
0%
Where all the forfeited shares are not reissued the share forfeited account will show as credit balance equal to gain on forfeiture of shares not yet issued.
0%
When the shares are forfeited, securities premium is debited along with share capital where premium has not been received.
0%
Where forfeited shares are issued at premium, the amount of such premium is credited to capital reserve account.

CBSE Questions for Class 12 Commerce Accountancy Accounting For Share Capital Quiz 1 - MCQExams.com

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Practice Class 12 Commerce Accountancy Quiz Questions and Answers

CBSE Questions for Class 12 Commerce Accountancy Accounting For Share Capital Quiz 1 - MCQExams.com

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Practice Class 12 Commerce Accountancy Quiz Questions and Answers

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