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

ABC Ltd. invited applications for issue of $$100,000$$ shares of $$Rs. 10$$ each at a premium of $$Rs. 2, Rs. 5$$ called at the time of application, $$Rs. 5$$ (including premium) at the time of allotment and balance $$Rs. 2$$ at the time of $$1st$$ call. Applications were received for $$1,30,000$$ shares. Application money was returned to the extent to $$10,000$$ shares and pro rate allotment was made to the remaining applicants of $$120,000$$. PQR to whom $$500$$ shares were allotted failed to pay allotment and calls money. Based allotted on the above facts, cash/ bank a/c would be debited by ___________ at the time of receipt of allotment money.
  • $$Rs. 398,000$$
  • $$Rs. 400,000$$
  • $$Rs, 397,500$$
  • $$Rs. 397,000$$
The maximum amount beyond which a company cannot raise share capital is called its _________.
  • authorized capital
  • declared capital
  • issued capital
  • subscribed capital
Which of the following should be deducted from the share capital to find out paid-up capital?
  • Calls-in advance
  • Call-in-arrears
  • Share forfeiture
  • Discount on issue of shares
Dividends are usually paid on __________.
  • Authorized capital
  • Issued capital
  • Called-up capital
  • Paid-up capital
XYZ Ltd. invited applications for public issue of $$20,000$$ equity shares of $$Rs. 10$$ each at a premium of $$Rs. 2$$, payable as under $$Rs. 2$$ on applications, $$Rs. 3$$ on allotment, $$Rs. 5$$ on first call (including premium) and balance on second and final call. Applications were received for $$30,000$$ shares, pro rate allotment was made for $$24,000$$ applications and the remaining applications were rejected. Vinay, who applied for $$4800$$ shares, failed to pay second call. Consequently his shares were forfeited and re-issued at $$Rs. 6$$. What amount would be transferred to Capital reserve A/c after the reissue of the forfeited shares?
  • $$18000$$
  • $$16000$$
  • $$12000$$
  • $$8000$$
When the full amount due in any call is not received the shortfall is debited to ___________.
  • suspense A/c
  • calls in arrears A/c
  • shortfall A/c
  • accrued calls A/c
To receive calls in advance it should be ___________.
  • authorized by articles of association
  • authorized by special resolution
  • sanctioned by central government
  • all of the above
According to sec. $$2(68)$$ of the Companies Act, $$2013$$ a private limited company is one which by its article of associations __________.
  • Restrict the rights of the members to freely transfer the shares
  • Limit the number of members to $$200$$
  • Prohibit an invitation to the public to subscribe for its share
  • All of the above
Sushil was holding $$300$$ shares of $$Rs. 10$$ issued at a discount of $$Rs. 2$$ per share. He paid $$Rs. 2$$ as application and failed to pay allotment money of $$Rs. 3$$ as a result of which his shares were forfeited. At the time of forfeiture of his shares Share capital A/c will be debited by ________.
  • $$Rs. 2100$$
  • $$Rs. 1500$$
  • $$Rs. 3000$$
  • $$Rs. 1800$$
DEF Ltd. invited application for issue of $$100,000$$ shares of $$Rs. 10$$ each at a premium of $$Rs. 2, Rs. 5$$ called at the time of application, $$Rs. 5$$ (including premium) at the time of allotment and balance $$Rs. 2$$ at the time of $$1st$$ call. Applications were received for $$1,30,000$$ shares. Application money was returned to the extent to $$10,000$$ shares and pro rata allotment was made to the remaining applicants of $$120,000$$. ABC to whom $$400$$ shares were allotted failed to pay first and final call. All the $$400$$ share were subsequently forfeited. There shares were subsequently re-issued at $$Rs. 8$$ fully paid. Based on the above facts, ABC must have applied for ___________.
  • $$420$$ shares
  • $$520$$ shares
  • $$480$$ shares
  • $$500$$ shares
Dividend is paid on ..
  • Face value
  • Paid up value
  • Called up value
  • Nominal value
LMN Ltd. invited application for issue of $$100,000$$ shares of $$Rs. 10$$ each at premium of $$Rs.2, Rs. 5$$ called at the time of applications, $$Rs. 5$$ (including premium) at the time of allotment and balance $$Rs. 2$$ at the time of $$1st$$ call. Application were received for $$1,30,000$$ shares. Application money was returned to the extent to $$10,000$$ shares and pro rata allotment was made to the remaining applicants of $$120,000$$. PQR to whom $$500$$ shares were allotted failed to pay allotment and calls money. Similarly ABC to whom $$400$$ shares were allotted failed to pay first and final call. All the $$900$$ shares were subsequently forfeited. These shares were subsequently re-issued at $$Rs. 8$$ fully paid. Based on the above facts, the minimum rate at which $$400$$ forfeited shares of ABC can be re-issued is ________.
  • $$Rs. 2$$
  • $$Rs. 3$$
  • $$Rs. 4$$
  • $$Rs. 5$$
From the following details calculate the number of equity shares of Rs. $$10$$ each to be issued in order to redeem the preference shares.
$$12\%$$ Redeemable preference shares of Rs. $$10$$ each $$=$$ Rs. $$150,000$$
Security premium A/c $$=$$ Rs. $$15,000$$
General Reserve A/c $$=$$ Rs. $$10,000$$
Profit and loss A/c $$=$$ Rs. $$14,000$$
Redeemable preference shares are to be redeemed at $$10\%$$ premium.
  • $$14000$$
  • $$12600$$
  • $$14300$$
  • $$13000$$
From the following details calculate the number of equity shares of Rs. $$10$$ each to be issued in order to redeem the preference shares. The company intends to raise the balance fund through issue of sufficient number of preference shares at $$10\%$$ discount.
$$12\%$$ Redeemable preference shares of Rs. $$10$$ each $$=$$ Rs. $$150,000$$
Security premium A/c $$=$$ Rs. $$15,000$$
General Reserve A/c $$=$$ Rs. $$10,000$$
Profit and loss A/c $$=$$ Rs. $$14,000$$
Redeemable preference shares are to be redeemed at $$10\%$$ premium.
  • $$14,000$$
  • $$10,000$$
  • $$8,000$$
  • $$13,000$$
From the following details calculate the number of equity shares of Rs. $$10$$ each to be issued in order to redeem the preference shares.
$$10\%$$ Redeemable preference shares of Rs. $$10$$ each $$=$$ Rs. $$150,000$$
Security premium A/c $$=$$ Rs. $$20,000$$
General Reserve A/c $$=$$ Rs. $$10,000$$
Share forfeited A/c $$=$$ Rs. $$6,000$$
Profit and loss A/c $$=$$ Rs. $$10,000$$
Redeemable preference shares are to be redeemed at $$10\%$$ premium.
  • $$13,000$$
  • $$12,500$$
  • $$18,000$$
  • $$11,000$$
From the following details calculate the number of equity shares of Rs. $$10$$ each to be issued in order to redeem the preference shares. The company intends to raise fund through equity shares at $$10\%$$ discount.
$$13\%$$ $$(50000)$$ Redeemable preference shares of Rs. $$10$$ each $$=$$ Rs. $$500,000$$
Security premium A/c $$=$$ Rs. $$55,000$$
General Reserve A/c $$=$$ Rs. $$25,000$$
Profit and loss A/c $$=$$ Rs. $$20,000$$
Redeemable preference shares are to be redeemed at $$10\%$$ premium.
  • $$39,000$$
  • $$50,000$$
  • $$48,000$$
  • $$41,000$$
Reserve capital is ______.
  • that part of uncalled capital which has to be called up in the event of winding up of the company
  • same as capital reserve
  • created out of revenue profit
  • created out of capital profits
Forfeited shares, when re-issued, cannot be issued at a discount more than __________.
  • amount forfeited on such shares.
  • $$20$$% of nominal value of such shares.
  • not less than the amount forfeited on such shares
  • None of the above.
STU Ltd. invited application for issue of $$100,000$$ shares of $$Rs. 10$$ each at a premium of $$Rs. 2, Rs. 5$$ called at the time of application, $$Rs. 5$$ (including premium) at the time of allotment and balance $$Rs. 2$$ at the time of $$1st$$ call. Applications were received for $$1,30,000$$ shares. Application money was returned to the extent to $$10,000$$ shares and pro rata allotment was made to the remaining applicants of $$120,000$$. PQR to whom $$500$$ shares were allotted failed to pay allotment and calls money. Similarly ABC to whom $$400$$ shares were allotted failed to pay first and final call. All the $$900$$ shares were subsequently forfeited. These shares were subsequently re-issued at $$Rs. 8$$ fully paid. Based on the above facts, on re-issue of all the $$900$$ forfeited shares the balance in Forfeiture all the $$900$$ forfeited shares the balance in Forfeiture A/c is ________.
  • $$Rs. 4,400$$
  • $$Rs. 4,000$$
  • $$Rs. 3,600$$
  • $$Rs. 4,200$$
A company cannot declare dividend to its shareholder, if it ....
  • Is not having sufficient cash at bank
  • Does not provide for depreciation on fixed assets
  • Is having some expansion plans
  • Is not permitted by Company Law Board
A company forfeited $$2,000$$ shares of Rs. $$10$$ each $$9$$ which, were issued at par) held by A 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 is?
  • Rs. $$10,000$$
  • Rs. $$8000$$
  • Rs. $$2000$$
  • Rs. $$18000$$
The directors of a company forfeited $$1000$$ shares of Rs. $$10$$ each, Rs. $$7.50$$ paid up, for non payment of final call money of Rs. $$2.50$$ per share. $$700$$ of these shares are reissued $$@$$ Rs. $$7/-$$ per share. The amount transferred to capital reserve A/c would be__________.
  • Rs. $$2,500$$
  • Rs. $$3,150$$
  • Rs. $$3,500$$
  • Rs. $$5,400$$
'A' Ltd acquires 'B' Ltd and agrees to issue 3 shares of Rs. 10 each, Rs. 9 paid up and the market value of Rs.15 per share for every 5 shares in 'B' Ltd. If B Ltd has 100000 shares of Rs.10 each, Rs.5 paid up and market value Rs 8 per shares therefore, the amount of purchase consideration is _______________.
  • Rs. 9,00,000
  • Rs. 6,00,000
  • Rs. 5,40,000
  • Rs. 8,00,000
If vendors are issued fully paid shares of Rs. 80,000 in consideration of net assets of Rs. 60,000, then the balance of Rs. 20,000 will be __________.
  • Debited to Profit & Loss Account
  • Debited to Goodwill Account
  • Credited to Capital Reserve Account
  • Credited to Share Premium Account
Dabur Ltd. forfeited 400 shares of Rs. 1 G each fully called up on which the holder has paid only application money at Rs. 4 per share. Out of these 250 shams were re issued at ',' 2 per share fully paid up. Capital reserve will be credited by:
  • Rs. 3,000
  • Rs. 1,600
  • Rs. 4,0300
  • Rs. 1,000
Solid ltd. issued 2,000, 10% preference shares of Rs. 100 each at par, which are redeemable at a premium of 10%. For the purpose of redemption, the company issued 1,500 equity shares of Rs. 100 each at a premium of 20% per share. At the time of redemption of preference shares, the amount to be transferred by the company to the Capital Redemption Reserve Account will be-
  • Rs. 50,000
  • Rs. 40,000
  • Rs. 2,00,000
  • Rs. 2,20,000
Which of the following pairs is not correctly matched?
  • Secured Debentures........ Deed of Mortgage
  • Rights Shares............. Issued to new shareholders
  • Convertible.......... Debentures
  • Participating............ Preference shares.
A Ltd, Acquired, assets worth Rs. $$15,00,000$$ form H Ltd. By issue of shares of Rs. $$100$$ $$@$$25% premium issued to settle the purchase consideration will be __________.
  • $$12,000$$ shares
  • $$15,000$$ shares
  • $$18750$$ shares
  • $$11,250$$ shares
$$10,000$$ equity shares of Rs. $$10$$ each were issued to public at a premium of Rs. $$2$$ per share. Applications were received for $$12,000$$ shares. Amount of securities premium account will be ________.
  • Rs. $$20,000$$
  • Rs. $$24,000$$
  • Rs. $$4,000$$
  • Rs. $$1,600$$
ABC Ltd forfeited $$20$$ shares of rs $$10$$ each, Rs. $$8$$ called up, on which X paid application and allotment money of Rs. $$2$$ and Rs. $$3$$ respectively. These shares were re issued to Y at $$6$$ fully paid. What was the balance in share forfeiture account before shares were re-issued?
  • Rs. $$40$$
  • Rs. $$60$$
  • Rs. $$100$$
  • Rs. $$160$$
J Ltd. Reissued $$2,000$$ shares which were forfeited by crediting share forfeited by credited share forfeiture account by Rs. $$3000$$. These shares were reissued at Rs. $$9$$ Per share. The amount transferred to capital reserve will be.
  • Rs. $$3000$$
  • Rs. $$2000$$
  • Rs. $$1000$$
  • NIL
X purchased the running business of A for Rs. $$60,000$$. In place of cash he discharged the purchase consideration by issue of equity shares of Rs. $$10$$ each at $$20\%$$ premium. Find the number of shares to be issued?
  • $$6,000$$
  • $$7,500$$
  • $$5,000$$
  • $$8,000$$
A to whom $$100$$ shares of Rs $$10$$ each were allotted at per, paid Rs. $$3$$ on allotment and Rs. $$3$$ on application but could not pay the first and final call money of Rs. $$4$$. His shares were forfeited by directors. The amount to be credited to share forfeited account will be.
  • Rs. $$500$$
  • Rs. $$400$$
  • Rs. $$600$$
  • Rs. $$1000$$
When shares are issued to promoters which account should be debited ?
  • Share Capital A/c
  • Assets A/c
  • Promoters A/c
  • Goodwill A/c
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Practice Class 12 Commerce Accountancy Quiz Questions and Answers