MCQ Questions for Class 12 Commerce Accountancy Accounting For Share Capital Quiz 5

A company cannot issue shares at a discount more than ________ % of its face value.

0%
$5$
0%
$10$
0%
$15$
0%
$20$

If minimum subscription is not received, then the company is required to refund the amount so received from the applicants within ________ days of issue of prospectus.

0%
$90$
0%
$120$
0%
$60$
0%
$15$

A share certificate is required to be signed by _________.

0%
Two directors and company secretary
0%
Chairman of the company
0%
Attorney of the company
0%
Chartered accountant

Discount on issue of shares is _________.

0%
amortized
0%
written in the first year
0%
netted of from share premium A/c
0%
all of the above

Share to be issued at discount must be issued within _________ from the date of central government approval.

0%
$2$ months
0%
$6$ months
0%
one year
0%
three months

X Ltd. purchased an automatic bottling machine from a vendor for

$Rs. 165,000$ . The company allotted him equity shares at a premium of

$10$ % instead of paying him in cash. How many equity shares will be allotted to the vendor if the company allotted the shares at

$10$ % discount?

0%
$18,333$
0%
$17,655.76$
0%
$17,650$
0%
$18,180$

When a company receives application for subscriptions to the shares of the company much more than the issued capital, the issue is called __________.

0%
Oversubscribed
0%
Under subscribed
0%
Overwhelmed issue
0%
Flopped show

Calls in advances attracts interest at _________.

0%
$5$ %
0%
$6$ %
0%
$8$ %
0%
$9$ %

If a shareholder does not pay his dues on allotment, for the amount due, there will be a ________________.

0%
Credit balance in the share allotment Account
0%
Debit balance in the share forfeiture Account
0%
Credit balance in the share forfeiture Account
0%
Debit balance in the share allotment Account

ABC Ltd. invited applications for public issue of

$20,000$ equity shares of

$Rs. 10$ each at premium of

$Rs. 2$ , payable as under

$Rs. 2$ on application,

$Rs. 3$ on allotment,

$Rs. 5$ on first call (including premium) and balance on second and final call. Applications were received for

$30,000$ shares, pro rata allotment was made for

$24,000$ applications and the remaining applications were rejected, Gopal who applied for

$4800$ shares failed to pay second call consequently his shares were forfeited and reissued at

$Rs. 6$ . Find the number of shares allotted to Gopal on pro rata basis.

0%
$4000$
0%
$4800$
0%
$3000$
0%
$4400$

XYZ 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 rate allotment was made to the remaining applicants of

$120,000$ . PQR to whom

$500$ shares were allotted failed to pay allotment and call money. These shares were subsequently re-issued at

$Rs. 8$ full paid. Based on the above facts,

$PQR$ must have applied for _________.

0%
$550$ shares
0%
$650$ shares
0%
$600$ shares
0%
$500$ shares

Select the false statement.

0%
Premium on issue of shares is available for distribution as dividend
0%
Shares of any type can be issued to vendors of some assets
0%
Shares cannot be issued at a discount more than $10$ %
0%
Notice of forfeiture is must before forfeiting the shares

Limit on managerial remuneration under the Companies Act,

$2013$ is ______________.

0%
$12,5$ % of taxable profit
0%
$11$ % of net profits
0%
$10$ % of MAT
0%
no such limit

When any shareholder pay any call money in advance then the A/c to be credited would be _________.

0%
calls in advance A/c
0%
pre-paid A/c
0%
suspense A/c
0%
goodwill A/c

Premium of issue of preference share is shown under __________.

0%
reserves and surplus
0%
miscellaneous expenses
0%
capital A/c
0%
secured loans and advances

When the incoming partner bring his share of goodwill in cash, which of these methods of revaluation of goodwill is appropriate?

0%
Revaluation method
0%
Memorandum revaluation method
0%
Premium method
0%
Any of the above

On an equity share of

$Rs. 20$ , the company has called up

$Rs. 18$ but actually received

$Rs. 16$ only. The difference of

$Rs. 2$ will be debited to ________.

0%
calls in arrears
0%
calls in advance
0%
calls in suspense
0%
calls in doubt

Discount allowed on re-issue of forfeited shares is ____________.

0%
debited to discount A/c
0%
debited to share forfeited A/c
0%
debited to profit and loss A/c
0%
debited to share premium A/c

A company can forfeit share for non payment of call money only if _________.

0%
special resolution to that effect is passed
0%
article of Association so provides
0%
allowed by central government on an application
0%
all the three conditions to be met

A company cannot re issue forfeited shares at a discount more than __________.

0%
$10$ %
0%
Amount forfeited
0%
Nominal value of the share
0%
Prevailing discount rate

On a share of

$Rs. 100$ issued at a premium of

$Rs. 10$ the whole amount has been called up but in the case of a shareholder only

$Rs. 80$ has been received, the share capital would be credited by ____________.

0%
$Rs. 100$
0%
$Rs. 110$
0%
$Rs. 80$
0%
$Rs. 70$

A share can be forfeited ___________.

0%
for non-payment of call money
0%
for failure to attend AGM
0%
for failure to send proxy form
0%
for any of the above failures

On an equity share of

$Rs. 20$ , the company has called up

$Rs. 16$ but actually received

$Rs. 18$ . The difference of

$Rs. 2$ will be ___________.

0%
debited to calls in Advance A/c
0%
credited to calls in Advance A/c
0%
credited to calls in Suspense A/c
0%
debited to calls in Doubt A/c

On a share of

$Rs. 100$ issued at a premium of

$Rs. 10$ the whole amount has been called up but one of the shareholders has paid only

$Rs. 80$ . Such shares were forfeited. To record this, the Share Forfeiture a/c would be credited by ________.

0%
$Rs. 80$
0%
$Rs. 20$
0%
$Rs. 30$
0%
$Rs. 70$

On re-issue of forfeited shares, profit is transferred to ______________.

0%
Share forfeiture a/c
0%
Bank a/c
0%
Capital reserve a/c
0%
Calls-in-arrears

Ashok was issued

$300$ shares of

$Rs. 10$ each issued at a discount of

$10$ %. He paid

$Rs. 2$ on application and failed to pay allotment money

$Rs. 3$ . Subsequently his shares were forfeited. The accounting entry of forfeiture would be ________.

0%
Share capital debit $Rs. 1500$ , credit share Forfeited A/c $Rs. 600$ , Share Allotment A/c $Rs. 900$
0%
Share capital debit $Rs. 1800$ , credit share Forfeited A/c $Rs. 60$ , Share Allotment A/c $Rs. 1200$
0%
Share capital debit $Rs. 1800$ , credit Share Forfeited A/c $Rs. 600$ , Share Allotment A/c $Rs. 900$ , Discount A/c $Rs. 300$
0%
Share capital debit $Rs. 1500$ , credit Share Forfeited A/c $Rs. 600$ , Share Allotment A/c $Rs. 60$ , Discount A/c $Rs. 300$

Pritam was issued

$500$ shares of

$Rs. 10$ each issued at a premium of

$10$ %. He paid

$Rs. 2$ on application and failed to pay allotment money of

$Rs. 4$ (including premium). Subsequently his shares were forfeited. The accounting entry of forfeiture would be __________.

0%
Debit Share capital A/c $Rs. 2500$ , debit Securities Premium A/c credit Share Forfeiture A/c $Rs. 1000$ , credit Share Allotment A/c $Rs. 2000$ .
0%
Debit Share Capital A/c $Rs. 3000$ , Credit Share Allotment A/c $Rs. 2000$ , Share Forfeited A/c $Rs. 1000$ .
0%
Debit Share Capital A/c $Rs. 3000$ , Credit Share Allotment A/c $Rs. 2500$ , Share Forfeited A/c $Rs. 50$ .
0%
Debit Share Capital A/c $Rs. 3000$ , Credit Share Allotment A/c $Rs. 1500$ , Share Forfeited A/c $Rs. 1500$ .

After re-issue of forfeited shares the balance in forfeited shares a/c is transferred to ________________.

0%
capital reserve a/c
0%
reserve capital a/c
0%
goodwill a/c
0%
general reserve a/c

X was issued

$500$ shares of ABC Ltd. at

$RS. 12$ including

$Rs. 2$ premium. He paid only application money of

$Rs. 3$ and failed to pay the allotment money of

$Rs. 4$ including premium. Consequently his shares were forfeited. Y was allotted

$400$ shares he paid

$Rs. 3$ on application,

$Rs. 4$ at the time of allotment and failed to pay the call money of

$Rs. 5$ . His shares were also subsequently forfeited. The company subsequently re-issued

$800$ shares at

$Rs. 8$ fully paid up as

$Rs. 10$ . Find the amount to be transferred to Capital reserve A/c on re-issue of

$800$ forfeited shares.

0%
$Rs. 1500$
0%
$Rs, 1200$
0%
$Rs, 1400$
0%
$Rs. 900$

From the following details calculate the number of equity shares of Rs.

$10$ each to be issued in order to redeem the preference shares.

$12\%$

$(20000)$ Redeemable preference shares of Rs.

$10$ each

$=$ Rs.

$200,000$
Security premium A/c

$=$ Rs.

$20,000$
General Reserve A/c

$=$ Rs.

$15,000$
Profit and loss A/c

$=$ Rs.

$30,000$
Redeemable preference shares are to be redeemed at

$10\%$ premium.

0%
$19,000$
0%
$15,500$
0%
$18,000$
0%
$11,000$

Which of the following is odd one?

0%
Writing of preliminary expenses
0%
Payment of dividend
0%
Writing off discount on issue of shares
0%
Writing off commission paid on issue of shares/debentures

A company's balance sheet shows the following information:
Outstanding Redeemable Preference Shares Rs.

$200,000$
Premium on redemption

$10\%$
Divisible profit available Rs.

$100,000$
Security Premium A/c Rs.

$15,000$
Fresh issue to be made at a discount of

$10\%$
The face value of fresh issue of shares will be ___________.

0%
Rs. $100,000$
0%
Rs. $1,16,670$
0%
Rs. $90,000$
0%
Rs. $115,500$

Rohan Industries Ltd. purchased a plant from Hind Industries for Rs.

$12,00,000$ . The company paid Rs.

$4,00,000$ in cash and agreed to allot

$10\%$ redeemable preference shares of Rs.

$100$ each at a premium of

$25\%$ for the balance amount. How many preference shares will be issued to the vendor if the shares are allotted at

$10\%$ discount?

0%
$8,889$
0%
$7,000$
0%
$6,900$
0%
$8,080$

X was issued

$500$ shares of ABC Ltd. at

$Rs. 12$ including

$Rs. 2$ premium. He paid only application money of

$Rs. 3$ and failed to pay the allotment money of

$Rs. 4$ including premium. Consequently his shares were forfeited. Y was also allotted

$400$ shares he paid

$Rs. 3$ on application,

$Rs. 4$ at the time of allotment and failed to pay the call money of

$Rs. 5$ . His shares were also subsequently forfeited. The company subsequently re-issued

$800$ shares at

$Rs. 8$ fully paid up as

$Rs. 10$ . Find the amount left in share forfeited A/c.

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

The audit of joint stock companies is done _________________.

0%
Optionally
0%
When ordered by the central government
0%
Mandatorily every year
0%
Once in five year5

On a share of

$Rs. 100$ issued at a premium of

$Rs. 10$ the whole amount has been called up but in the case of a shareholder only

$Rs. 80$ has been received. On reissue of the shares at

$Rs. 90$ fully paid up the discount on reissue would be ___________.

0%
$Rs. 10$ Debited to Share Forfeiture A/c
0%
$Rs. 30$ Debited to Share Forfeiture A/c
0%
$Rs. 20$ Debited to Share Forfeiture A/c
0%
$Rs. 20$ Debited to Discount A/c

On a share of

$Rs. 100$ issued at a premium of

$Rs. 10$ the whole amount has been called up but in the case of a shareholder only

$Rs. 80$ has been received and subsequently these were forfeited. What should be the minimum price at which the forfeited shares can be reissued?

0%
$Rs. 20$
0%
$Rs. 30$
0%
$Rs. 70$
0%
$Rs. 80$

ABC Ltd. purchased a plant of Rs.

$30,000$ from DEF Ltd. The company paid Rs.

$8,000$ in cash and agreed to allottee sufficient number of equity shares of Rs.

$10$ each at a premium of

$10\%$ . Find the number of shares to be allotted to DEF Ltd.

0%
$20,000$
0%
$22,000$
0%
$2,000$
0%
$2,200$

As per Companies Act,

$2013$ as private company can have ________ members.

0%
$30$
0%
$50$
0%
$100$
0%
$200$

As per Companies Act,

$2013$ a company must prepare its books as per _________.

0%
Cash basis
0%
Accrual basis
0%
Hybrid basis
0%
Accrual basis and according to double entry system

Shares issued to the promoters for their services is debited to ___

0%
Goodwill a/c
0%
Capital reserve a/c
0%
General reserve a/c
0%
Cash a/c

Profit from the date of purchase of business to the date of incorporation of the company is called

0%
Profit prior to incorporation
0%
Pre-acquisition A/c
0%
Prior-period profits
0%
Pre-launch profits

In dematerialization of shares ______ passes the physical shares to company for making it into electronic form.

0%
Shareholder
0%
Depository participant
0%
Bank
0%
None of the above

Rematerialization of shares means __________.

0%
Getting the share certificates in bank account
0%
Converting them into money by selling the shares
0%
Getting the share certificate in the physical form
0%
None of the above

The means of obtaining financial resources that involves the sale of part of the ownership of the business is called ______.

0%
bankruptcy
0%
equity financing
0%
commercial loans
0%
debt financing

Full form of ESOP is __________.

0%
Employee sale option plan
0%
Employee stock option plan
0%
Employee stock option procedure
0%
None of the above

If separate set of books is maintained and suppliers grant discount at the time of making the payment for purchase of goods, such discount received will be treated as ___________________.

0%
Income of Joint Venture, hence credited to Joint Venture A/c
0%
Will be credited to Joint Bank A/c
0%
Will be credited to Co-venturers Capital A/c
0%
Will be ignored from the books

The balance appearing in the books of a company at the end of the year were: CRR A/c Rs. 50,000; Sccurity Premium Rs. 5,000; Revaluation Reserve Rs. 20,000; P & L A/c (Dr) Rs. 10,Maximum amount available for distribution as Bonus Shares will be __________.

0%
Rs. 50,000
0%
Rs. 55,000
0%
Rs. 45,000
0%
Rs. 57,000

The adjustment to be made for interest on capital is _________________.

0%
Debit profit and loss account and deduct interest from capital
0%
Credit profit and loss account and deduct interest from capital
0%
Debit profit and loss account and add interest to capital
0%
Credit profit and loss account and add interest from capital

A and B enter into a joint venture sharing profits and losses equally. A purchased 5000 Kg of rice @ Rs. 25/kg. B purchased 1000 kg of wheat @ Rs. 30/kg. A sold 1000 kg of wheat @ Rs. 35/kg and B sold 5000 kg of rice @ Rs. 30/kg. What will be the final remittance ?

0%
B will remit Rs. 1,05,000 to A
0%
A will remit Rs.1,05,000 to B
0%
A will remit Rs. 1,00,000 to B
0%
B will remit Rs. 90,000 to A

CBSE Questions for Class 12 Commerce Accountancy Accounting For Share Capital Quiz 5 - 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 5 - MCQExams.com

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Practice Class 12 Commerce Accountancy Quiz Questions and Answers

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