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

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.

0%
$Rs. 398,000$
0%
$Rs. 400,000$
0%
$Rs, 397,500$
0%
$Rs. 397,000$

The maximum amount beyond which a company cannot raise share capital is called its _________.

0%
authorized capital
0%
declared capital
0%
issued capital
0%
subscribed capital

Which of the following should be deducted from the share capital to find out paid-up capital?

0%
Calls-in advance
0%
Call-in-arrears
0%
Share forfeiture
0%
Discount on issue of shares

Dividends are usually paid on __________.

0%
Authorized capital
0%
Issued capital
0%
Called-up capital
0%
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?

0%
$18000$
0%
$16000$
0%
$12000$
0%
$8000$

When the full amount due in any call is not received the shortfall is debited to ___________.

0%
suspense A/c
0%
calls in arrears A/c
0%
shortfall A/c
0%
accrued calls A/c

To receive calls in advance it should be ___________.

0%
authorized by articles of association
0%
authorized by special resolution
0%
sanctioned by central government
0%
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 __________.

0%
Restrict the rights of the members to freely transfer the shares
0%
Limit the number of members to $200$
0%
Prohibit an invitation to the public to subscribe for its share
0%
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 ________.

0%
$Rs. 2100$
0%
$Rs. 1500$
0%
$Rs. 3000$
0%
$Rs. 1800$

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 ___________.

0%
$420$ shares
0%
$520$ shares
0%
$480$ shares
0%
$500$ shares

Dividend is paid on ..

0%
Face value
0%
Paid up value
0%
Called up value
0%
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 ________.

0%
$Rs. 2$
0%
$Rs. 3$
0%
$Rs. 4$
0%
$Rs. 5$

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.

0%
$14000$
0%
$12600$
0%
$14300$
0%
$13000$

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.

0%
$14,000$
0%
$10,000$
0%
$8,000$
0%
$13,000$

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.

0%
$13,000$
0%
$12,500$
0%
$18,000$
0%
$11,000$

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.

0%
$39,000$
0%
$50,000$
0%
$48,000$
0%
$41,000$

Reserve capital is ______.

0%
that part of uncalled capital which has to be called up in the event of winding up of the company
0%
same as capital reserve
0%
created out of revenue profit
0%
created out of capital profits

Forfeited shares, when re-issued, cannot be issued at a discount more than __________.

0%
amount forfeited on such shares.
0%
$20$ % of nominal value of such shares.
0%
not less than the amount forfeited on such shares
0%
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 ________.

0%
$Rs. 4,400$
0%
$Rs. 4,000$
0%
$Rs. 3,600$
0%
$Rs. 4,200$

A company cannot declare dividend to its shareholder, if it ....

0%
Is not having sufficient cash at bank
0%
Does not provide for depreciation on fixed assets
0%
Is having some expansion plans
0%
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?

0%
Rs. $10,000$
0%
Rs. $8000$
0%
Rs. $2000$
0%
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__________.

0%
Rs. $2,500$
0%
Rs. $3,150$
0%
Rs. $3,500$
0%
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 _______________.

0%
Rs. 9,00,000
0%
Rs. 6,00,000
0%
Rs. 5,40,000
0%
Rs. 8,00,000

Explanation

Calculation:

Step 1:

$1,00,000$ X

$3$ X Rs.

$15$ =

$45,00,000$

Step 2: Step 1 divide by 5= Rs.

$9,00,000$

Note: Market value of shares has been considered to calculate the purchase consideration.

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 __________.

0%
Debited to Profit & Loss Account
0%
Debited to Goodwill Account
0%
Credited to Capital Reserve Account
0%
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:

0%
Rs. 3,000
0%
Rs. 1,600
0%
Rs. 4,0300
0%
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-

0%
Rs. 50,000
0%
Rs. 40,000
0%
Rs. 2,00,000
0%
Rs. 2,20,000

Which of the following pairs is not correctly matched?

0%
Secured Debentures........ Deed of Mortgage
0%
Rights Shares............. Issued to new shareholders
0%
Convertible.......... Debentures
0%
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 __________.

0%
$12,000$ shares
0%
$15,000$ shares
0%
$18750$ shares
0%
$11,250$ 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 ________.

0%
Rs. $20,000$
0%
Rs. $24,000$
0%
Rs. $4,000$
0%
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?

0%
Rs. $40$
0%
Rs. $60$
0%
Rs. $100$
0%
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.

0%
Rs. $3000$
0%
Rs. $2000$
0%
Rs. $1000$
0%
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?

0%
$6,000$
0%
$7,500$
0%
$5,000$
0%
$8,000$

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.

0%
Rs. $500$
0%
Rs. $400$
0%
Rs. $600$
0%
Rs. $1000$

When shares are issued to promoters which account should be debited ?

0%
Share Capital A/c
0%
Assets A/c
0%
Promoters A/c
0%
Goodwill A/c

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

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Practice Class 12 Commerce Accountancy Quiz Questions and Answers

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