CBSE Questions for Class 12 Commerce Accountancy Accounting For Share Capital Quiz 8 - MCQExams.com

X Ltd. made a final call on equity shares @ Rs. 20 each. Face value of shares is Rs.One shareholder holding 300 shares paid the final call after 2.5 months after it had become due. The company had adopted Table F of Schedule I to the Companies Act, 2013, the amount of interest on Calls-in-Arrear will be ______.
  • Rs. 75
  • Rs. 125
  • Rs. 150
  • Rs. 100
Sukriti Ltd. forfeited 100 shares of Rs. 10 each, for non-payment of final call of RsOf these, 60 shares were reissued @ Rs. 9 per share as fully paid. On reissue, amount to be transferred to Capital Reserve Account will be _____.
  • Rs. 420
  • Rs. 800
  • Rs. 200
  • Rs. 540
X Ltd. made a final call on equity shares @ Rs. 20 each. Face value of shares is Rs.One shareholder holding 500 shares had paid the final call before 4 months it had become due. The company had adopted Table F of Schedule I to the Companies Act, 2013, the amount of interest on Calls-in-Advance will be ____.
  • Rs. 333.33
  • Rs. 400
  • Rs. 2,000
  • Rs. 600
__________ is a separate legal structure where total capital can be divided in many shares.
  • Partnership
  • Sole proprietorship
  • Company
  • Non-profit organization
If a company has the word limited at the end of its name, this means that the _________.
  • Shareholder's liability for the debts of the business is restricted
  • Number of shareholders have fixed upper limit
  • Number of members can never be increased
  • There is a limit to the number of shares that can be issued
ABC Inc issues $$30,000$$ shares of Rs.$$1$$ at Rs$$1.30$$ for each share. Which of the following statement is true?
  • Ordinary share capital will increase by Rs.$$30,000$$ and share premium will increase by Rs.$$39,000$$.
  • Ordinary share capital will increase by Rs.$$39,000$$ and share premium will increase by Rs.$$9,000$$.
  • Ordinary share capital will increase by Rs.$$39,000$$ and share premium will be unaffected.
  • Ordinary share capital will increase by Rs.$$30,000$$ and share premium will increase by Rs.$$9,000$$.
It is UNCOMMON in calls in advance that ______________________.
  • Directors pay $$8\%$$ interest on the amount paid by shareholder
  • Directors pay $$6\%$$ interest on the amount paid by shareholder
  • Directors pay $$5\%$$ interest on the amount paid by shareholder
  • Directors pay $$4\%$$ interest on the amount paid by shareholder
A preference share is one which enjoys a _______.
  • preferential right regarding payment of dividend
  • preferential right regarding allotment of shares
  • preferential right regarding payment of dividend and return of capital
  • preferential right regarding return of capital
Shares of some limited company are ___________.
  • Floating assets
  • Liquid assets
  • Fixed assets
  • Intangible assets
A company that has the liability of its members limited by the Memorandum of Association to such amount as the members may respectively undertake to contribute to the assets of the company in the event of its being wound up it termed______________.
  • Limited Liability Company
  • Public Limited Liability Company
  • General Limited Liability Company
  • Company Limited by Guarantee
On 1.1.2015, X Ltd. makes an issue of 1,00,000 equity shares of Rs. 100 each payable as follows:
Rs.
Application20
Allotment30 (3 months after allotment)
Final Call50
Applications were received for 1, 20,000 shares and the directors refunded the excess application money. One shareholder, who was allotted 2,000, shares paid first and final call with allotment money and another shareholder did not pay allotment money on his 3,000 shares but which he paid with first and final call. Directors have decided to charge and allow interest, according to the Table F of Schedule I to the Companies Act,The amount of interest on calls-in-advance _______.
  • Rs. 3,000
  • Rs. 2,500
  • Rs. 1,800
  • Rs. 1,500
"Share holder wealth" in a firm is represented by the _______.
  • number of people employed in the firm
  • book value of the firm's assets less the book value of its liabilities
  • amount of salary paid to its employees
  • market price per share of the firm's common stock
In case of under subscription, ________ is NOT found.
  • Total no of application received is equal to total no of shares offered
  • Total no of application received is less than total no of shares offered
  • Total no of application is more than the total no of shares offered
  • Both a & c
When there is an increase in the authorized capital with which the company is registered, ______ is to be altered.
  • Memorandum of association
  • Articles of association
  • Paid up capital
  • Subscribed capital
Premium received on shares is treated as_______.
  • Capital reserve
  • Capital receipt
  • Capital revenue
  • All of the above
What is the nature of expenses incurred on the issue of shares?
  • Revenue
  • Capital
  • Neither (a) nor (b)
  • Both (a) and (b)
Share may be issued :
  • For cash
  • For consideration other than cash
  • For both (a) and (b)
  • None of the above
A company issued shares at Rs.Company received Rs. 60 per share Rs. 60 is________.
  • Subscribed capital
  • Paid up capital
  • Called up capital
  • None of the above
Prospectus is_____.
  • Invitation from company to subscribe for shares
  • Document submitted to ROC after allotment of shares
  • Document which shows the number of shares that have been allotted
  • Document which shows the paid up capital of the company
Amongst the following that is not short term means of raising capital_____.
  • Loans from financial institutions
  • Bills of exchange
  • Promissory note
  • None of the above
Features of calls-in-advance_____.
  • Considered as capital of the company
  • Shown on the liabilities side
  • No dividend pain on calls in advance
  • Both B & C
When shares are forfeited, share capital account is ___________.
  • Debited
  • Credited
  • Adjusted
  • None of these
Which of the following statement is correct for preference shares?
  • They have voting rights
  • Their rights and given in memo-condom of association
  • They can vote at the time of winding up of the company
  • All the above
A company forfieted 1,000 shares on 10 each (which ere issued at par) held by Saurabh for non-payment of allotment money of Rs. 4 per share. The called-up value per share was tOn forfeiture, the amount debited to share capital account will be _____________.
  • Rs. 10,000
  • Rs. 8,000
  • Rs. 2,000
  • Rs. 18,000
Large Ltd. issued 25,000 equity shares of Rs.100 each at a premium of Rs.15 each payable as Rs.25 on application, Rs.40 on allotment and balance in the first call. The applications were received for 75,000 equity shares. The above is the case of ____________.
  • Forfeiture of shares
  • Pro rata allotment
  • Over-subscription
  • Under-subscription
Y Ltd. forfeited 300 shares of Rs.10/- each for non-payment of allotment money of Rs.4/- first call and second call of Rs.2/- each. All the shares were re-issued @ Rs.10 paid up. Calculate the amount transferred to capital reserve.
  • 800
  • 900
  • 1,800
  • 600
Pious Limited purchases a machine worth Rs. 1,15,000 from Indigo Traders. Payment was made as Rs. 10,000 by cheque and the remaining by issue of equity shares of the face value of Rs. 10 each fully paid-up at an issue price of Rs. 10.50 each. Amount of share premium would be -
  • Rs. 6,000
  • Rs. 5,000
  • Rs. 7,000
  • Rs. 4,000
X Ltd. forfeited 700 shares of Rs. 10 each (9 called up) on which he paid up 7 per share. Out of these 200 shares were re-issued at Rs.Calculate the amount credited to Share Capital A/c at time of re-issued?
  • 6,300
  • 4,300
  • 1,800
  • 2,000
Company cannot issue shares more than _______________.
  • Authorised Capital
  • Subscribed Capital
  • Issued Capital
  • Paid up Capital
The maximum amount beyond which a company is not allowed to raise funds by issue of its shares. is called ______________.
  • Subscribed capital
  • Called-up capital
  • Paid-up capital
  • Authorised capital
X failed to pay final call on 24,000 shares Rs.20 per share on 15.12.2013 and paid the same on 15.03.What is the interest of calls in arrears.
  • 12,000
  • 6,000
  • 6,150
  • 6,250
Premium received on re-issue of forfeited share should be ____________.
  • debit to share forfeited A/c
  • credit to share forfeited A/c
  • credit securities premium A/c
  • none of these
Which of the following statement is not true?
  • When the shares are forfeited, securities premium is debited along with share capital where premium has not been received.
  • Where all the forfeited shares are not re-issued, the share forfeited account will show a credit balance equal to gain on forfeiture of shares not yet re-issued.
  • Loss on re-issue of shares adjusted against forfeiture amount.
  • Where forfeited shares are re-issued at premium, the amount of such premium is credited to the capital reserve account.
________ is particularly useful for enterprises that are legally structured as non-profits and therefore cannot obtain equity capital. 
  • Quasi-equity debt security
  • Loan security
  • Deemed security
  • All of the above
When shares are issued at a price less than the face value, they are said to be issued at __________.
  • Discount
  • Premium
  • Par
  • None of above
When shares are issued at a price higher than the face value, they are said to be issued at ____________.
  • Discount
  • Premium
  • Par
  • None of above
When shares are not payable in a lump sum, third instalment is called ______________.
  • Application Money
  • Allotment Money
  • First Call Money
  • Final Call money
Which of the following statement is true in relation to provisions of Companies Act, 2013?
  • In case of a private company, every member owing fully paid-up shares can freely transfer shares held by him subject to the provisions in the articles of the company.
  • The liability of the members of a company is limited to the extent of the market value or nominal value whichever is less of the shares held by them.
  • A company being a body corporate can sue but cannot be sued in its own name.
  • The corporate veil can be lifted to see why company is making huge advertisement cost even if it is incurring losses.
Minimum paid-up capital for a private company is __________ as per Companies Act, 2013.
  • Rs Two lakh
  • Rs One lakh
  • Rs Five lakh
  • Rs Ten lakh
Total share holding of an investor is known as his/her _____________.
  • Mutual Fund
  • Holding Period
  • Pastfolio
  • Limit order
________means the appropriation of a certain number of shares to an applicant who has applied shares in public issue by the board of directors in consultation with stock exchange.
  • Allotment
  • Application
  • Acceptance
  • Final call
When shares are not payable in a lump sum, first instalment is called ___________.
  • Application Money
  • Allotment Money
  • First Call Money
  • Final Call Money
If a company receives excess application money and the application money equal to shares issued transferred to Share Capital A/c and application money received on excess shares-some money is adjusted and against allotment and remaining was refunded, then which of the following entry is correct?
  • Share Application A/c Dr.

    Bank A/c Dr.

    To Share Allotment A/c

    To Share Capital A/c
  • Share Application A/c Dr.

    To share Allotment A/c Dr.

    To Share Capital A/c

    To Bank A/c
  • Share Allotment A/c Dr.

    Share CapitalA/c Dr.

    To Bank A/c

    To Share Application A/c
  • None of the above
If the numbers of shares issued for is more than the number of shares applied the shares are said to be ___________.
  • Oversubscribed
  • Undersubscribed
  • Minimum subscription
  • None of above
The following information pertains to X Ltd. 
Called-up-share capital= Rs. 5,00,000
Calls-in-arrears=Rs. 40,000
calls-in-advance=Rs. 25,000
Proposed dividend=15%
The amount of payable is ____________.
  • Rs. 75,000
  • Rs. 72,750
  • Rs. 71,250
  • Rs. 69,000
Which of the following security can be forfeited for non-payment of call?
  • Shares.
  • Debentures.
  • Bonds.
  • Any of the above.
If forfeited shares are re-issued at a premium, the amount of such premium should be creted to ______________.
  • Capital Reserve Account
  • Securities Premium Account
  • Revenue Reserve Account
  • Profit & Loss Account
In case of oversubscription of shares each applicant receives the shares in some proportion, it is known as ____________.
  • Bonus allotment
  • Right allotment
  • Per applicant allotment
  • Pro rata allotment
X Ltd. made a final call on equity share @Rs. 20 each. face value of share is Rs.one share holder holding 300 shares paid the final call after 2.5 months after it has become due.the company had adopted Table F of schedule I to the companies Act 2013 , the amount of interest on Calls-in-Arrear=?
  • Rs. 75
  • Rs.125
  • Rs. 150
  • Rs. 100
If the number of shares applied for is more than the number of shares issued the shares are said to be ____________.
  • Oversubscribed
  • Undersubscribed
  • Minimum subscription
  • None of above
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