CBSE Class 12 Accountancy Accounting For Share Capital MCQs Set D

Question: As per section of the Companies Act, amount received as premium on securities cannot be utilized for:
a) Issuing fully paid bonus shares to the members
b) Purchase of fixed assets
c) Writing off preliminary expenses
d) Buy back of its own shares
Answer: b

Question: Which one of the following is not a part of subscribed capital?
a) Equity shares issued to vendor
b) Preference shares of convertible type
c) Forfeited shares
d) Bonus shares
Answer: c

Question: A company issued 6,000 shares of Rs. 10 each. Money to be called up: Rs. 3 on application, Rs. 3 on allotment, Rs. 2 on first call, and remaining on second call. On allotment, one shareholder having 100 shares paid full amount. The amount collected on allotment is:
a) 18,000
b) 12,000
c) 18,400
d) 18,600
Answer: c

Question: When nominal (face) value of a share is called up by the company but as some shareholders did not pay the money, the shares are forfeited. The share capital is shown in the balance sheet (Notes) of a company under the following heading:
a) Subscribed and fully paid up
b) Subscribed but not fully paid up
c) Subscribed and called up
d) Subscribed but not called up
Answer: a

Question: The subscribed share capital of Mukand Ltd is Rs. 1,00,00,000 of Rs. 100 each. There were no calls in arrear till the final call was made. The final call made was paid on 97,500 shares. The calls in arrear amounted to Rs. 87,500. The final call on share is:
a) Rs. 20
b) Rs. 35
c) Rs. 25
d) Rs. 45
Answer: b

Question: A company forfeited 3,000 shares of Rs.10 each (which were issued at par) held by Kishore for nonpayment of allotment money of Rs.5 per share. The called-up value per share was Rs.8. On forfeiture, the amount debited to Share Capital is:
a) Rs. 30,000
b) Rs. 24,000
c) Rs. 15,000
d) Rs. 6,000
Answer: b

Question: Shares Application & Allotment A/c is a:
a) Personal
b) Real
c) Nominal
d) None of these
Answer: a

Question: A company Forfeited 1,000 shares of Rs. 10 each, Rs. 7 called up, for the non-payment of Rs. 2 First call. All these shares were reissued at Rs. 5 per share. What amount will be debited to Share Forfeiture account?
a) 5,000
b) 2,000
c) 7,000
d) 10,000
Answer: b

Question: Z Limited issued shares of Rs.100 each at a premium of 10%. Mr. Q purchased 500 shares and paid Rs.20 on application but did not pay the allotment money of Rs.30. If the company forfeited his 30% shares, the Forfeiture Account will be credited by:
a) Rs. 4,500
b) Rs. 3,500
c) Rs. 1,650
d) Rs. 3,000
Answer: 7,19,000

Question: The portion of authorized capital which can be called up only on the liquidation of the company is called:
a) Authorised capital
b) Reserve capital
c) Issued capital
d) Called up capital
Answer: b

Question: If the purchase consideration is more than net worth, which account will be debited for the difference amount?
a) Capital Reserve A/c
b) Asset A/c
c) Goodwill A/c
d) Vendor A/c
Answer: c

Question: Following amounts were payable on issue of shares by a company: Rs. 3 on application, Rs. 3 on allotment, Rs. 2 on first call and Rs. 2 on final call. X holding 500 shares paid only application and allotment money whereas Y holding 400 shares did not pay final call. Amount of calls in arrear will be:
a) 3,800
b) 2,800
c) 1,800
d) 6,200
Answer: b

Question: A company issued 4000 equity shares of Rs. 50 each at par payable as under: On application 20%, on allotment 40%, on first call 10%, on final call balance. Applications were received for 10,000 shares. Allotment was made pro-rata. How much amount will be received in cash on allotment?
a) Rs. 6,000
b) Nil
c) Rs. 16,000
d) Rs. 20,000
Answer: d

Question: Preference shares can be of the following types:
a) Cumulative Preference shares
b) Participating Preference shares
c) Redeemable Preference shares
d) All of the above
Answer: d

Question: Ltd. company took over assets worth Rs. 10,00,000 and liabilities of Rs. 3,00,000 for purchase consideration worth Rs. 12,00,000. How much amount will be debited to goodwill account?
a) Rs. 10,00,000
b) Rs. 5,00,000
c) Rs. 3,00,000
d) Rs. 12,00,000
Answer: b

Question: A company Forfeited 2,000 shares of Rs. 10 each issued at 20% premium to be paid at the time of allotment on which Rs. 8 is called up. Company did not receive Rs. 4 on Allotment including premium and Rs. 2 on First call. What will be the amount credited to Share Forfeiture account?
a) 10,000
b) 8,000
c) 6,000
d) 2,000
Answer: c

Question: If the Purchase consideration is less than net worth then which account will be debited for the difference amount?
a) Capital Reserve
b) Assets
c) Goodwill
d) Vendor
Answer: a

Question: Which of the following capital is not shown in the company’s Balance Sheet?
a) Authorised capital
b) Issued & subscribed capital
c) Called-up & paid up capital
d) Reserve capital
Answer: d

Question: The amount of capital that a company can issue as par value is called:
a) Authorised capital
b) Share premium
c) Issued capital
d) Fixed capital
Answer: a

Question: A company Forfeited 2,000 shares of Rs. 10 each issued at 20% premium to be paid at the time of allotment on which Rs. 8 is called up. Company did not receive Rs. 4 on allotment including premium and Rs. 2 on First call. What will be the amount debited to Share Capital account?
a) 20,000
b) 16,000
c) 24,000
d) None of these
Answer: b

Question: Ltd. forfeited 1,000 shares of Rs. 10 each for the non-payment of final call of Rs. 2. The account will be debited for called up price of a share at the time of forfeiture of shares:
a) Share Forfeiture A/c
b) Share Capital A/c
c) Share Final Call A/c
d) None of these
Answer: b

Question: Company allotted 20,000 shares to applicants of 50,000 shares after rejecting 10,000 applications. The ratio in which company allotted the shares will be:
a) 5:2
b) 5:3
c) 2:1
d) 3:1
Answer: c

Question: When the shares are issued for consideration other than cash, which account will be debited?
a) Securities Premium
b) Capital Reserve A/c
c) Vendor A/c
d) Share Capital A/c
Answer: c

Question: Ltd. company took over assets worth Rs. 10,00,000 and liabilities of Rs. 3,00,000 for a purchase consideration of Rs. 12,00,000. Rs. 2,00,000 bill payable accepted and remaining was paid by issuing shares at a premium of 25% on face value Rs. 100. How much amount will be credited to Securities Premium A/c?
a) Rs. 8,00,000
b) Rs. 2,00,000
c) Rs. 10,00,000
d) Rs. 12,00,000
Answer: b

Question: Co. has issued 6,000 equity shares of Rs. 10 each at par and called up amount Rs. 6 per share. The remaining part of capital is termed as:
a) Called up Capital
b) Paid up Capital
c) Uncalled Capital
d) Subscribed Capital
Answer: c

Question: Amount of discount given at the time of reissue of shares should be debited to:
a) Share Capital
b) Discount on Shares
c) Share Forfeiture A/c
d) Calls-in-Arrears A/c
Answer: c

Question: Daisy Limited forfeited 200 shares Rs. 10 each who had applied for 500 shares, issued at a premium of 10% for nonpayment of final call of Rs. 3 per share. Out of these 100 shares were issued as fully paid up for Rs. 15. The profit on reissue is:
a) Rs. 700
b) Rs. 6400
c) Rs. 300
d) Rs. 400
Answer: a

Question: Rajan Limited issued 50,000 shares at a price lower than the nominal value of the share. The shares issued are called:
a) Sweat equity shares
b) Redeemable Preference shares
c) Equity shares
d) Bonus shares
Answer: a

Question: A company has issued 6,000 equity shares of Rs. 10 each at par on application Rs. 2, Rs. 3 on allotment, Rs. 2 on first call, Rs. 2 on second call and remaining on final call. The second call was not made. The amount collected on allotment is:
a) 17,000
b) 19,000
c) 15,000
d) 18,000
Answer: d

Question: Zen Ltd purchased the sundry assets of M/s Surat Industries for Rs. 28,60,000 payable in fully paid shares of Rs. 100 each. State the number of shares issued to vendor when issued at premium of 10%.
a) 28,000
b) 31,778
c) 28,600
d) 26,000
Answer: d