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

Share or Security Premium can be used for writing off _____________.
  • loss on sale of assets
  • preliminary expenses
  • bad debts
  • both B and C
Which of the following is incorrect as to a share?
  • It has a nominal value
  • It has a distinct number
  • It may be transferred in fractions
  • 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?
  • Rs 10,937-50
  • Rs 16,250
  • Rs 10,000
  • Rs 9,700
While making an adjusting entry in respect of interest on capital, we credit __________________.
  • Interest on capital account
  • Capital account
  • Profit and loss account
  • 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
  • $$Rs. 1,000$$
  • $$Rs. 1,500$$
  • $$Rs. 3,000$$
  • $$Rs. 2,000$$
A shareholder who can vote conditionally he is ____________.
  • equity shareholder
  • preference shareholder
  • member
  • none of the above.
A company cannot issue irredeemable preference shares.
  • True
  • False
The balance in the deceased partner's capital account is transferred to the _________capital account.
  • Solvent Partners
  • Insolvent Partners
  • Representative of Deceased Partner
  • 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?
  • Nil
  • 16,000
  • 18,000
  • None
Share Application Account is in the nature of ______________.
  • nominal account
  • personal account
  • real account
  • none of these
Which of the following statements is false?
  • Shares can be issued for cash or for any other consideration.
  • In the event of over-subscription, excess amount of application has to be either refunded or a pro-rata allotment is made.
  • SEBI guideline are applicable for issue of shares.
  • 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 ______________.
  • Preliminary Expenses A/c
  • Goodwill A/c
  • Promoters A/c
  • Share Capital A/c
The discount allowed on reissue of forfeited shares is debited to _________________.
  • General reserve account
  • Capital reserve account
  • Revaluation reserve account
  • None of these
A company can not issue following kinds of shares _____________.
  • Redeemable equity shares
  • Irredeemable preference shares
  • Equity shares with differential voting rights
  • Redeemable preference shares
The part of share capital, which can be called up only on the winding up of a company, is called  __________________.
  • Authorised Capital
  • Called up Capital
  • Sacrificing ratio gaining ratio
  • Reserve Capital
The maximum rate of premium at which shares can be issued is ________________.
  • $$5$$%
  • $$10$$%
  • $$15$$%
  • There is no limit
The maximum amount beyond which a company is not allowed to raise funds, by issue of shares, is its _______________.
  • Issued Capital
  • Reserve Capital
  • Authorised Capital
  • Subscribed Capital
Shares of a private company can be sold through __________________.
  • Private circulation
  • Stock exchange
  • Private circulation and exchange
  • None of these
The excess amount received over the called amount of shares is credited to ________________.
  • Calls-in-advance account
  • Share capital account
  • Capital Reserve account
  • 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?
  • For writing off loss as sale and assets.
  • For the issue of fully paid bonus shares to the members of the company.
  • For writing off preliminary expenses of the company.
  • 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 _______________.
  • $$Rs. 200$$
  • $$Rs. 100$$
  • $$Rs. 400$$
  • $$Rs. 500$$
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?
  • $$Rs. 225$$
  • $$Rs. 600$$
  • $$Rs. 525$$
  • $$Rs. 450$$
Dividends are usually paid on ___________.
  • Authorised capital
  • Issued capital
  • Called-up capital
  • Paid-up capital
Which of the following is false?
  • Loss on reissue of shares cannot be more than the gain on forfeiture of those shares.
  • 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.
  • When the shares are forfeited, share premium is debited along with share capital where premium has not been received.
  • 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 _____________.
  • $$Rs. 12$$
  • $$Rs. 10$$
  • $$Rs. 8$$
  • $$Rs. 4$$
Which one of the following statements regarding forfeiture of shares is not correct?
  • Forfeited shares may be reissued at a discount or at a premium
  • The title of the new purchaser is not affected by any irregularity in the forfeiture or sale of the shares
  • Return of allotment of reissued of forfeited shared is filed with the Registrar of Companies
  • 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 _______________.
  • $$Rs. 300$$
  • $$Rs. 60$$
  • $$Rs. 90$$
  • $$Rs. 30$$
On the above question, if Shyam had been allotted $$350$$ shares, how many shares he would have applied for?
  • $$300\ shares$$
  • $$400\ shares$$
  • $$420\ shares$$
  • $$425\ shares$$
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?
  • $$Rs. 200$$
  • $$Rs. 120$$
  • $$Rs. 80$$
  • $$Rs. 20$$
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 ________________.
  • $$Rs. 5,000$$
  • $$Rs. 4,000$$
  • $$Rs. 1,000$$
  • $$Rs. 9,000$$
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?
  • $$Rs. 300$$
  • $$Rs. 60$$
  • $$Rs. 30$$
  • $$Rs. 90$$
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 _____________.
  • $$Rs. 180$$
  • $$Rs. 162$$
  • $$Rs. 120$$
  • $$Rs. 1.8$$
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 _______________.
  • $$Rs. 1,00,00,000$$
  • $$Rs. 90,00,000$$
  • $$Rs. 1,70,00,000$$
  • $$Rs. 1,36,00,000$$
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 ______________.
  • $$Rs. 100$$
  • $$Rs. 300$$
  • $$Rs. 400$$
  • $$Rs. 500$$
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=?
  • 60 shares; 120
  • 300 shares; 160
  • 320 shares; 200
  • 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 _____________.
  • $$Rs. 100$$
  • $$Rs. 90$$
  • $$Rs. 80$$
  • $$Rs. 70$$
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 ______________.
  • $$Rs. 2,400$$
  • $$Rs. 2,000$$
  • $$Rs. 1,600$$
  • $$Rs. 1,400$$
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 _________________.
  • Debited by $$Rs. 2,400$$
  • Debited by $$Rs. 2,000$$
  • Credited by $$Rs. 1,800$$
  • 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 ______________.
  • $$Rs. 2,500$$
  • $$Rs. 5,400$$
  • $$Rs. 3,750$$
  • $$Rs. 3,150$$
State with the reasons whether the following statements are True or False:
Regret letter is often sent to the members.
  • True
  • False
Dividends are usually paid as a percentage of:
  • Authorised share capital
  • Net profit
  • Paid-up capital
  • 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.
  • Rs. 1,50,000 and Rs. 1,00,000
  • Rs. 1,46,250 and Rs. 42,000
  • Rs. 1,56,250 and Rs.68,750
  • 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:
  • 2,15,000
  • 2,05,000
  • 2,10,000
  • None of these
Which of the following can be treated as type of shares?
  • Equity shares
  • Preference share
  • Both (A) & (B)
  • None of the above
The interest on calls-in-advance is paid for the period from the _________.
  • Date of receipt of application money to the date of appropriation
  • Date of receipt of allotment money to the date of appropriation
  • Dale of receipt of advance to the date of appropriation
  • 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?
  • Company cannot redeem preference shares
  • Can redeem preference shares
  • Company should make the final call @ Rs 2 and make shares fully paid up, and then preference shares may be redeemed.
  • 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.
  • 2%
  • 5%
  • 10%
  • 15%
Equity shareholders are____.
  • Entitled to dividend at a fixed rate
  • Not entitled to dividend at a fixed rate
  • Entitled to dividend prior to payment of dividend to preference shareholder
  • 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 _________________.
  • Issue of fully paid bonus shares
  • Writing off losses of the company
  • Writing off preliminary expenses
  • Writing off commission or discount on issue of shares
Which of the following is not true?
  • Loss on reissue of shares cannot be more than the gain on forfeiture of those shares.
  • 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.
  • When the shares are forfeited, securities premium is debited along with share capital where premium has not been received.
  • Where forfeited shares are issued at premium, the amount of such premium is credited to capital reserve account.
0:0:1


Answered Not Answered Not Visited Correct : 0 Incorrect : 0

Practice Class 12 Commerce Accountancy Quiz Questions and Answers