CBSE Questions for Class 12 Commerce Accountancy Accounting For Share Capital Quiz 7 - MCQExams.com

Redeemable preference shares of Rs 2,00,000 are redeemed at par for which purpose fresh equity shares are issued for Rs 80,000 at par. The amount to be transferred to Capital Redemption Reserve Account would be:
  • Rs 80,000
  • Rs 1,20,000
  • Rs 2,00,000
  • Rs 40,000
At the time of forfeiture of shares the share capital account is __________. 
  • debited with called-up amount of the forfeited shares
  • debited with face value of the shares
  • credited with the called-up amount of the shares
  • credited with the face value of the shares
A company cannot issue redeemable preference share for a period exceeding___________.
  • 6 years
  • 7 years
  • 8 years
  • 20 years
If XYZ Co. Ltd. forfeited $$10$$ shares of $$Rs. 10$$ each $$Rs. 7$$ called up, $$Rs. 5$$ paid on application, the amount to be forfeited is _________. 
  • $$Rs. 50$$
  • $$Rs. 70$$
  • $$Rs. 120$$
  • $$Rs. 100$$
Alteration of share capital is effected by a company, if it is authorized by the _______________,
  • Memorandum of Association
  • Articles of Association
  • Shareholders
  • Board of Directors
________ refers to that part of the authorized capital which has actually been offered to the public for subscription.
  • Called up capital
  • Subscribed capital
  • Issued Capital
  • Nominal or authorized capital
________will be entitled to receive arrears of their dividend.
  • Cumulative Preference Share
  • Non-Cumulative Preference Share
  • Convertible Debenture
  • All of the above
ABC Ltd. forfeited $$20$$ shares of $$Rs. 10$$ each, $$Rs. 7$$ called up on which application money of $$Rs. 5$$ per share was paid. The entry for forfeiture is __________. 
  • Share capital A/c Dr. $$Rs. 100$$

    To Share forfeiture A/c $$Rs. 100$$
  • Share Capital A/c Dr. $$Rs. 100$$

    To Share Application A/c $$Rs. 100$$
  • Share capital A/c Dr. $$Rs. 140$$

    To Share forfeiture A/c $$Rs. 100$$

    To Share allotment A/c $$Rs. 40$$
  • Share capital A/c Dr. $$Rs. 140$$

    To Share allotment A/c $$Rs. 140$$
The directors of Zenith Ltd. made the final call of Rs.30 per share on May 15,2004, indicating the last date of payment of call money to be May 31,Mr. B, holding 5,000 shares, paid the call money on July 15, 2004.
If the company adopts Table A, the amount of interest on calls- in- arrear to be paid by Mr. F=?
  • Rs. 625.00
  • Rs. 937.50
  • Rs. 750
  • Rs. 1,125.00
When shares are forfeited, capital account is debited by __________. 
  • forfeited amount
  • called up amount on shares
  • normal value of shares
  • paid up amount on shares
Which of the following rights may be given to preference shareholder if provided by Articles?
  • To participate in the surplus profits remaining after payment of equity dividend
  • To receive arrears of dividend at the time of winding up
  • To receive premium on redemption of preference shares
  • All of the above
Any balance in the capital reduction account after the writing of lost capital is transferred to ________________.
  • Capital reserve account
  • Share surrendered account
  • Capital recognization account
  • Contingency reserve account
The entry for the above question will be ______________.
  • Share Capital A/c Dr. $$70$$

    To forfeiture A/c $$70$$
  • Share Capital A/c Dr. $$70$$

    To Share Calls A/c $$20$$

    To Share Forfeiture A/c $$50$$
  • Share Capital A/c Dr. $$100$$

    To Share Application A/c $$Rs. 50$$

    To Share Allotment A/c $$Rs. 20$$

    To Share Forfeiture A/c $$Rs. 30$$
  • Share Capital A/c Dr. $$100$$

    To forfeiture A/c $$100$$
_____ refers to that part of the issued capital which has actually been subscribed by the public.
  • Called up capital
  • Subscribed capital
  • Issued capital
  • Nominal or authorized capital
Which of the following Table of Schedule I to the Companies Act, 2013 contains the provisions relating to Calls-in-Advance & Calls-in-Arrears?
  • Table F
  • Table A
  • Table C
  • Table G
_________ refers to that part of subscribed capital which has actually been paid by the shareholder to whom shares has been allotted.
  • Paid-up capital
  • Subscribed capital
  • Issued capital
  • Nominal or authorized capital
Which of the following securities can be forfeited for non-payment of allotment or call money?
(I) Equity Shares
(II) Equity Shares, Preference Shares
(III) Preference Shares, Equity Shares & Debentures
(IV) Debentures
Select the correct answer from the options given below -
  • (I) only
  • (Iii) only
  • (I) & (IV) only
  • (II) only
The forfeited shares may be re-issued____.
(I) at par only
(II) at par or at premium only
(III) at par or at discount only
(IV) at par or at premium or at discount
The correct answer is -
  • (II)
  • (III)
  • (I)
  • (IV)
________ shares is the most important source of raising long term capital by a company.
  • Equity
  • Preference
  • Bonus
  • Right
Capital of the company which is usually divided into different units of a fixed amount known as_____.
  • Debentures
  • Shares
  • Profit Ratio
  • None of the Above
If the number of shares issued for is more than the number of shares applied, the shares are said to be______.
  • Oversubscribed
  • Undersubscribed
  • Minimum subscription
  • None of the above
The money raised by issue of preference shares is called as _________ share capital.
  • Equity
  • Preference
  • Right
  • Bonus
The money raised by issue of equity shares is called ________ share capital.
  • Equity
  • Preference
  • Bonus
  • Right
B Ltd. issued 1,00,000 equity shares of Rs. 10 each to the public at par. The details of the amount payable are as follows:
Application                Rs. 2.00
Allotment                   Rs. 3.00
First & final call         Rs. 5.00
Applications were received for 1,20,000 shares. Excess application monies were refunded. All other amount was received excepting final call on 1,000 shares. These shares were forfeited and reissued at Rs. 8 per share.
On reissue of forfeited shares, discount debited to share forfeiture account will be ______.
  • Rs. 3,000
  • Rs. 5,000
  • Rs. 8,000
  • Rs. 2,000
Preference shares resemble debentures as they bear ________ rate of return.
  • fixed
  • fluctuating
  • higher
  • lower
N Ltd. Issued 1,00,000 equity shares of Rs.10 each to the public at par. Full amount payable at the time of application. Application was received for 1,20,000 shares. Excess application to be credited to share capital account should be_____.
  • Rs. 12,00,000
  • Rs. 10,00.000
  • Rs. 1,20,000
  • Rs. 1,00,000
B Ltd. issued 1,00,000 equity shares of Rs. 10 each to the public at par. The details of the amount payable are as follows:
Application                Rs. 2.00
Allotment                   Rs. 3.00
First & final call         Rs. 5.00
Applications were received for 1,20,000 shares. Excess application monies were refunded. All other amount was received excepting final call on 1,000 shares. These shares were forfeited and reissued at Rs. 8 per share.
On forfeiture of shares share, Forfeiture Account will be credited by_____.
  • Rs. 3,000
  • Rs. 5,000
  • Rs. 8,000
  • Rs. 2,000
If forfeited shares are re-issued at a premium, the amount of such premium should be credited to_____.
  • Capital Reserve Account
  • Securities Premium Account
  • Revenue Reserve Account
  • Profit & Loss Account
S Ltd. issued 1,00,000 equity shares of Rs. 10 each at a premium of Rs. 2 per share to the public. Full amount payable at the time of application. Application was received for 1,20,000 shares. Excess application monies were refunded. Amount to be credited to share capital account should be____.
  • Rs. 12,00,000
  • Rs. 10,00,000
  • Rs. 14,40,000
  • Rs. 10,40,000
10,000 equity shares of Rs. 10 each were issued to public at a premium of Rs. 2 per share. Application was received for 12,000 shares. Amount of securities premium account will be_____.
  • Rs. 24,000
  • Rs. 20,000
  • Rs. 4,000
  • Rs. 1,600
B Ltd. issued 1,00,000 equity shares of Rs. 10 each to the public at par. The details of the amount payable are as follows:
Application                Rs. 2.00
Allotment                   Rs. 3.00
First & final call         Rs. 5.00
Applications were received for 1,20,000 shares. Excess application monies were refunded. All other amount was received excepting final call on 1,000 shares. These shares were forfeited and reissued at Rs. 8 per share.
On receipt of first & final call, bank account will be debited by _____.
  • Rs. 2,00,000
  • Rs. 4,95,000
  • Rs. 3,00,000
  • Rs. 5,00,000
Equity shares represent the __________ of a company.
  • Creditors
  • Debtors
  • Ownership
  • Capital
B Ltd. Issued 1,00,000 equity shares of Rs. 10 each to the public at par. The details of the amount payable are as follows:
Application                Rs. 2.00
Allotment                   Rs. 3.00
First & final call         Rs. 5.00
Applications were received for 1,20,000 shares. Excess application monies were refunded. All other amount was received except final call on 1,000 shares. These shares were forfeited and reissued at Rs. 8 per share.
Amount to be refunded on allotment for excess application is ______.
  • Rs. 20,000
  • Rs. 40,000
  • Rs. 30,000
  • Rs. 50,000
B Ltd. issued 1,00,000 equity shares of Rs. 10 each to the public at par. The details of the amount payable are as follows:
Application                Rs. 2.00
Allotment                   Rs. 3.00
First & final call         Rs. 5.00
Applications were received for 1,20,000 shares. Excess application monies were refunded. All other amount was received excepting final call on 1,000 shares. These shares were forfeited and reissued at Rs. 8 per share.
Closing balance of Bank Account will be ______.
  • Rs. 10,03,000
  • Rs. 10,00,000
  • Rs. 10,43,000
  • Rs. 12,00,000
D Ltd. issued 1,00,000 equity shares of Rs 10 each at a premium of Rs. 2 per share. The amount payable was Rs. 2 on application, Rs. 5 on allotment (including premium) & rest on first & final call. Applications were received for 1,20,000 shares. Excess application money was refunded to applications. All monies due were received except the allotment and first & final call monies on 1,000 shares. These shares were forfeited and reissued at Rs 9 per share.
Amount to be refunded on allotment for excess application will be _____.
  • Rs. 20,000
  • Rs. 40,000
  • Rs. 30,000
  • Rs. 50,000
B Ltd. issued 1,00,000 equity shares of Rs. 10 each to the public at par. The details of the amount payable are as follows:
Application                Rs. 2.00
Allotment                   Rs. 3.00
First & final call         Rs. 5.00
Applications were received for 1,20,000 shares. Excess application monies were refunded. All other amount was received excepting final call on 1,000 shares. These shares were forfeited and reissued at Rs. 8 per share.
On reissue of forfeited shares, balance of Share Forfeiture Account transferred to Capital Reserve Account will be _____.
  • Rs. 3,000
  • Rs. 5,000
  • Rs. 8,000
  • Rs. 2,000
T Ltd. forfeited 500 equity shares of Rs. 10 fully called-up, held by Mr. Ram for non-payment of first call of Rs. 5 and final of Rs. 3 each. However, he paid application money @ Rs. 2 per share. These shares were reissued at Rs. 10 each. On reissue, amount to be transferred to Capital Reserve Account will be _____.
  • Rs. 1,500
  • Rs. 2,500
  • Rs. 500
  • Rs. 1,000
N Ltd. has allocated 10,000 shares to the applicants of 14,000 shares on pro rata basis. The amount payable on application is Rs.Ram applied for 420 shares. The number of shares allocated and amount carried forward for adjustment against allotment will be_____.
  • 300 shares; Rs. 240
  • 60 shares; Rs. 160
  • 340 shares; Rs. 160
  • 320 shares; Rs. 240
A Ltd. acquired assets worth Rs. 71,25,000 from H Ltd. by issue of shares of Rs. 10 @ premium of 25%. The number of shares issued to settle the purchase consideration will be ____.
  • 5,70,000 shares
  • 7,12,500 shares
  • 84,375 shares
  • 50,625 shares
W Ltd. forfeited 400 equity shares of Rs. 10 fully called-up, held by Mr. P for non-payment of final of Rs. 3 each. However, he paid application money @ Rs. 2, Allotment at Rs. 2 and First call at Rs. 3 per share. These shares were reissued at Rs. 10 each. On reissue, amount to be transferred to Capital Reserve Account will be _____.
  • Rs. 2,800
  • Rs. 1,600
  • Rs. 1,200
  • Rs. 400
T Ltd. forfeited 500 equity shares of Rs. 10 fully called-up, held by Mr. Ram for non-payment of allotment money of  Rs. 5 (including Rs. 2 Premium), first call of Rs. 2 and final call of Rs. 3 each. However, he paid application money @ Rs. 2 per share. These shares were reissued at Rs. 113 each. On reissue, amount to be transferred to Capital Reserve Account will be _____.
  • Rs. 1,500
  • Rs. 2,500
  • Rs. 500
  • Rs. 1,000
T Ltd. forfeited 500 equity shares of Rs. 10 fully called-up, held by Mr. Ram for non-payment of allotment money of Rs. 5 (including Rs. 2 Premium), first call of Rs. 2 and final of Rs. 3 each. However, he paid application money @ Rs. 2 per share. These shares were reissued at Rs. 9 each. On reissue, amount to be transferred to Capital Reserve Account will be ____.
  • Rs. 1,500
  • Rs. 2,500
  • Rs. 500
  • Rs. 1,000
D Ltd. issued 1,00,000 equity shares of Rs 10 each at a premium of Rs. 2 per share. The amount payable was Rs. 2 on application, Rs. 5 on allotment (including premium) & rest on first & final call. Applications were received for 1,20,000 shares. Excess application money was refunded to applications. All monies due were received except the allotment and first & final call monies on 1,000 shares. These shares were forfeited and reissued at Rs 9 per share.
On receipt of application money, Bank Account will be debited by ______.
  • Rs. 2,00,000
  • Rs. 2,40,000
  • Rs. 3,00,000
  • Rs. 5,00,000
Alex forfeited 100 shares of Rs. 10 each issued. At a premium of 20% (to be paid at the time of application money) on which allotment money of Rs. 4 and first call money of Rs. 3 were not received, the final call money of Rs. 2 is not yet called. These shares were originally allotted in the ratio of 4:These shares were subsequently re-issued at a discount of Rs. 1 per share, credited as Rs. 8 paid-up. On reissue, amount to be transferred to Capital Reserve Account will be _____.
  • Rs. 90
  • Rs. 81
  • Rs. 75
  • Rs. 54
Jindal Ltd. forfeited 400 equity shares of Rs. 10 each, issued at par held by Mr. X for non-payment of first call of Rs. 2 per share and the final call of Rs. 3 per share. Out of these, 150 shares were reissued to Mr. Y at Rs. 8 per share and the rest of these were re-issued to Mr. Z at Rs. 7 per share. On reissue, amount to be transferred to Capital Reserve Account will be ______.
  • Rs. 1,200
  • Rs. 1,600
  • Rs. 1,050
  • Rs. 750
Z Ltd. issued 10,000 shares of Rs. 10 each. The called up value per share was Rs.The company bought 200 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. 2,000
  • Debited by Rs. 1,600
  • Credited by Rs. 1,600
  • Debited by Rs. 1,200
A company has subscribed capital of 2,00,000 equity shares of Rs. 25 each, Rs. 20 per share called up. The directors forfeited 200 equity shares held by a shareholder who failed to pay the first call made @ Rs. 10 per share. Later, the directors reissued these shares as Rs. 20 per share paid up at Rs. 15 per share. On reissue, amount to be transferred to Capital Reserve Account will be _____.
  • Rs. 1,000
  • Rs. 1,400
  • Rs. 1,500
  • Rs. 1,100
W Ltd. forfeited 400 equity shares of Rs. 10 fully called-up, held by Mr. P for non-payment of final of Rs. 3 each. However, he paid application money @ Rs. 2, Allotment at Rs. 2 and First call at Rs. 3 per share. These shares were reissued at Rs. 13 each. On reissue, amount to be transferred to Capital Reserve Account will be _____.
  • Rs. 2,800
  • Rs. 1,600
  • Rs. 1,200
  • Rs. 400
X Ltd. forfeited 200 equity shares of Rs. 10 each, Rs. 8 called-up for non-payment of first call money @ Rs. 2 each. Application money @ Rs. 2, Allotment money @ Rs. 4 per share have already been received by the company. Out of these, 150 shares were reissued at Rs. 7 per share as showing Rs. 8 paid up. On reissue, amount to be transferred to Capital Reserve Account will be _____.
  • Rs. 1,200
  • Rs. 1,600
  • Rs. 1,050
  • Rs. 750
Due to non -payment of first call of Rs. 3 per share, Mona Ltd. forfeited 100 shares of Rs. 10 each, which were issued at par, Rs. 8 per share were called up till date. Of these forfeited shares, 80 shares were issued subsequently by Mona Ltd. at Rs. 5 as Rs. 8 paid-up per share. On reissue, amount to be transferred to Capital Reserve Account will be ______.
  • Rs. 100
  • Rs. 140
  • Rs. 150
  • Rs. 160
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