CBSE Questions for Class 12 Commerce Accountancy Accounting For Share Capital Quiz 2 - MCQExams.com

Shares of a company can't be issued at ______________.
  • Premium
  • Discount
  • Par
  • Any of these
State, with reasons, whether the following statements are True or False.
A share certificate is a bearer document.
  • True
  • False
In the absence of partnership agreement, interest on drawings of a partners is charged :
  • At $$6\%$$ per annum
  • At $$9\%$$ per annum
  • At $$12\%$$ per annum
  • No interest is charged
X Ltd. forfeited 10 shares of Rs 10 each issued at a discount of 10% to Y on which a second & financial call of Rs 4 was not yet called and a first call of Rs 4 was not received. 8 of these shares were reissued as Rs 8 called up for Rs 7.50 per share. On reissue, the Share Capital will be ____________.
  • Debited with Rs 48
  • Credited with Rs 48
  • Debited with Rs 60
  • Credited with Rs 64
Y Ltd. forfeited 50 shares of Rs 100 each issued at 10% premium on which allotment money of Rs 30 per share (including premium) and first call of Rs 30 per share were not received and the second and final call of Rs 20 per share was not yet called. 20 of these shares as Rs 80 paid up for Rs 70 per share.
On re-issue, the Share Capital Account will be ___________________.
  • Debited with Rs 1,600
  • Credited with Rs 1,600
  • Debited with Rs 4,000
  • Credited with Rs 1400
Which of the following statements is true?
  • Par value must be separately reported in the balance sheet because it represents the market value of the shares when it was first issued
  • Selling common shares for more than par value results in gain that is reported in the income statement
  • Common shareholders assume a higher investment risk than long-term creditors
  • Non-convertible debentures cannot be issued by companies
How much is Paid up Capital?
  • Rs 2,00,00,000
  • Rs 1,80,00,000
  • Rs 1,70,00,000
  • Rs 71,00,000
State, with reasons, whether the following statement is True of False
The holder of share warrant may not be given full right of membership.
  • True
  • False
State, with reasons, whether the following statements are True and False.
The rate of interim dividend is greater then final dividend.
  • True
  • False
______ is deducted from the called-up capital in order to calculate paid-up capital.
  • Calls in arrear
  • Calls in advance
  • Uncalled capital
  • Reserve capital
The profit on re-issue of shares is transferred to ________.
  • General reserve
  • Capital reserve
  • P/L Account
  • P/L appropriation account
Preference shareholders are ______ of the company.
  • creditors
  • owners
  • customers
  • borrowers
Public limited companies cannot issue __________.
  • Equity shares
  • Deferred shares
  • Preference shares
  • Right Share
When shares are forfeited, share capital account is debited by __________.
  • paid up amount of shares
  • called up amount of shares
  • face value of shares
  • uncalled capital
Forfeiture of shares results in compulsory termination of _____________ due to non-payment of allotment/call money. 
  • allotment
  • membership
  • subscription
  • issue
Shares which carry preferential rights are called _________.
  • Equity shares
  • Preference shares
  • Sweaty equity
  • Greenshoe
The part of the capital which will be called up only in the event of winding up of the company is called _____ capital.
  • issued
  • paid-up
  • reserve
  • uncalled
The discount on re-issue of forfeited shares is debited to the  ________ A/c.
  • Share capital
  • Shares forfeited
  • Bank
  • Discount on issue of shares
On forfeiture of shares, which of the following account is credited with the amount of money already received on such shares?
  • Shares forfeited a/c
  • Share capital a/c
  • Unpaid calls a/c
  • Share premium a/c
When an existing company takes over the business of one or more existing companies, it is called _____________.
  • Amalgamation
  • Absorption
  • Internal reconstruction
  • None of these
For amalgamation in the nature of merger, the shareholders holding at least _______or more of the facevalue of equity shares of the transferor company becomes the equity shareholders of the transferee company. 
  • 90%
  • 80%
  • 100%
  • None of these
__________is the account created in connection with internal reconstruction.
  • Realization a/c
  • Capital reduction a/c
  • Adjustment a/c
  • CRR a/c
Capital reduction account is used to _________.
  • Write of losses
  • Transfer of capital
  • Issue bonus shares
  • None of these
Alteration of shares of smaller amounts into shares of larger amount is called _________ of share capital.
  • surrender
  • subdivision
  • consolidation
  • None of these
Under net payment method, purchase consideration includes all payments made to the shareholders in the form of _________.
  • Equity share
  • Preference share
  • Cash
  • All of these
Amount sacrificed by the shareholders is called ______.
  • Capital reserve
  • General reserve
  • Capital reduction
  • None of these
Which of the following fictitious assets is not taken over by the transferee company?
  • Preliminary expenses
  • Underwriting commision
  • Discount on issue of shares
  • All of these
While preparing the transferee company's financial statement under amalgamation in the nature of merger, the assets and liabilities taken over from the transferor company should be incorporated at _____.
  • Cost
  • Book value
  • Revised value
  • None of these
The amount of surrendered shares is credited to ________.
  • CRR
  • Sinking fund
  • Capital reduction account
  • Reserve
Which of the following result in reduction of capital?
  • Reducing share capital
  • Reducing the amount payable to creditors
  • Appreciation in the value of assets
  • All of these
Which of the following does not involve liquidation of any company?
  • Internal reconstruction
  • Amalgamation
  • Absorption
  • External reconstruction
Which of the following is not an alteration of capital?
  • Consolidation of shares
  • Sub-division of shares
  • Conversion of shares into stock
  • Paid off paid up capital in excess of needs of the company
Which of the following is not a case of combination?
  • External reconstruction
  • Internal reconstruction
  • Amalgamation
  • Absorption
General insurance is a contract of ______.
  • Contribution
  • Indemnity
  • Guarantee
  • None of these
The balance in capital reduction a/c after writing off all accumulated loss, fictitious assets and overvalued assets are transferred to _______.
  • Capital reserve
  • General reserve
  • Reserve capital
  • Goodwill
Under which of the following circumstances can a company resort to internal reconstruction?
  • Accumulated huge losses
  • Shortage of capital
  • Over valued assets
  • All of these
Reinsurance is common in _________.
  • Life insurance
  • General insurance
  • Marine insurance
  • None of these
________ represents that part of discount received during the year by a bank which relates to the next accounting year.
  • Trade discount
  • Normal discount
  • Unexpired discount
  • Cash discount
Life insurance is a contract of ___________.
  • Indemnity
  • Guarantee
  • Contribution
  • None of these
The term capital structure denotes ____________________.
  • Total of Liability side of Balance Sheet
  • Equity Funds, Preference Capital and Long-term Debt
  • Total Shareholders Equity
  • Types of Capital issued by a Company
An unregistered company can't have more than _________ members.
  • $$20$$
  • $$25$$
  • $$50$$
  • $$100$$
Section $$12$$ requires that One Person company shall mention along with its name(in brackets) ____________.
  • One Person Company
  • OPC
  • One Person Company Pvt Ltd or Ltd
  • None of the above
With regard to government company, identify the statement representing correct feature of Government company.
  • Govt company can't sue the government in its own name as litigant
  • Employees of government company are not employees of central/state government
  • A government company can't wound like any other company
  • A government company must use either limited or Private Limited at the end of its name
Which of the following generally not result in increase in total dividend liability?
  • Share-split
  • Right Issue
  • Bonus Issue
  • All of the above
A private company is required compulsorily to limit through its articles, the number of members to __________.
  • $$20$$
  • $$50$$
  • $$200$$
  • $$500$$
Restrictions on transferability of shares is relevant in case of _______.
  • Only private company having share capital
  • Private company incorporated as a pure guarantee company
  • Private company having either Share capital or Guarantee company
  • None of these
______ of net surplus of a life insurance company is given to policyholders as bonus.
  • 90%
  • 80%
  • 95%
  • None of these
In case of a company limited by shares, a shareholder has paid full on his shares, his liability will be.
  • As decided by directors
  • An equal amount to already paid up value of share
  • Nil
  • None of these
The committee to recommend formation of POC(One Person Company) in India is __________?
  • Alagh
  • J.J.Irani
  • H.C.Baba
  • None of these
The basic purpose of Green shoe option is to act as stabilizing force when issue is ___________.
  • Under subscribed
  • Over subscribed
  • Either Under or Over subscribed
  • None of these
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Practice Class 12 Commerce Accountancy Quiz Questions and Answers