CBSE Class 12 Accountancy Accounting For Share Capital MCQs Set E

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 will the amount transferred to Capital Reserve account?
a) 2,000
b) 3,000
c) 4,000
d) 5,000
Answer: b

Question: Penalty for delay in refunding application money is charged at:
a) 6%
b) 5%
c) 15%
d) 20%
Answer: c

Question: A company Forfeited 1,000 shares of Rs10 each, Rs7 called up. For the non-payment of Rs 2 First call, all these shares were reissued at Rs 5 per share. What will be the amount credited to share capital account at reissue?
a) 7,000
b) 10,000
c) 5,000
d) 2,000
Answer: a

Question: Amount of money not received out of called up capital is:
a) Added to share capital
b) Subtracted from share capital
c) Shown as current liabilities
d) Shown as current asset
Answer: b

Question: Zee Ltd issued 15,000 equity shares of Rs. 20 each at a premium of Rs. 5 payable Rs. 5 on application, Rs. 10 on allotment (including premium) and the balance on first and final call. The company received applications for 22,500 shares and allotment was made pro rata. Bittoo to whom 1,200 shares were allotted, failed to pay the amount due on allotment. All his shares were forfeited after the call was made. The forfeited shares were reissued to Dheeraj at par. Assuming that no other bank transactions took place, the bank balance of the company after the above transactions is:
a) Rs. 6,85,000
b) Rs. 3,60,500
c) Rs. 3,78,000
d) Rs. 6,34,000
Answer: c

Question: A company issued 10,000 shares of Rs. 10 each at par; Rs. 3 on application; Rs. 3 on allotment; Rs. 4 on First & Final call. One shareholder holding 1,000 shares paid the entire amount of his shares with application. Calculate amount received on application:
a) 1,00,000
b) 1,17,000
c) 1,10,000
d) 37,000
Answer: d

Question: Arrange the following in proper sequence as types of “Share Capital”.
a) Paid up capital
b) Issued capital
c) Subscribed capital
d) Called up capital
Answer: Issued, Subscribed, Called-up, Paid-up

Question: A company issued 4,000 equity shares of Rs. 10 each at par payable as under: On application Rs. 3, on allotment Rs. 2, on first call Rs. 4 and on final call Rs. 1 per share. Applications were received for 16,000 shares. Application for 6,000 shares were rejected and pro-rata allotment was made to the applicants for 10,000 shares. How much amount will be received in cash on first call, when excess application money is adjusted towards amount due on allotments and calls?
a) Rs. 6,000
b) Nil
c) Rs. 16,000
d) Rs. 10,000
Answer: a

Question: E Ltd. had allotted 10,000 shares to the applicants of 14,000 shares on pro-rata basis, application money on another 6,000 shares was refunded. The amount payable on the application was Rs. 2. Sitaraman applied for 420 shares. The number of shares allotted to him will be:
a) 60 shares
b) 340 shares
c) 320 shares
d) 300 shares
Answer: d

Question: Maximum limit of premium on shares is:
a) 32%
b) 20%
c) No limit
d) 100%
Answer: c

Question: The shares which in addition to the fixed preference dividend, carry a right to participate in the surplus profits, if any, after dividend at a stipulated rate has been paid to the equity shareholders are called:
a) Participating preference shares
b) Convertible preference shares
c) Redeemable preference shares
d) Cumulative preference shares
Answer: a

Question: T Ltd had allotted 20,000 shares to the applicants of 24,000 shares on pro-rata basis. The amount payable on application is Rs. 2. Manoranjan applied for 450 shares. The number of shares allotted and the amount carried forward for adjustment against allotment money due from him is:
a) 150 shares, Rs. 375
b) 375 shares, Rs. 150
c) 400 shares, Rs. 100
d) 300 shares, Rs. 300
Answer: b

Question: 2,000 shares of Rs. 10 on which Rs. 7 have been called and Rs. 5 has been paid are forfeited. Out of these 1,500 shares are reissued for Rs. 9 as fully paid. What is the amount to be debited to Share Forfeiture A/c at the time of reissue of shares?
a) Rs. 13,500
b) Rs. 1,500
c) Rs. 15,000
d) Rs. 14,000
Answer: b

Question: Mithas Limited was formed with share capital of Rs. 50,00,000 divided into 50,000 shares of Rs.100 each. 9,000 shares were issued to the vendor as fully paid for purchase consideration of furniture acquired. 30,000 shares were allotted in payment of cash on which Rs.70 per share was called and paid. State the amount of subscribed capital:
a) Rs. 50,00,000
b) Rs. 30,50,000
c) Rs. 30,00,000
d) Rs. 20,00,000
Answer: b

Question: Faltu Limited invited application for 2,00,000 shares of Rs.10 each. These shares were issued at premium of Rs.11 each which was payable at the time of allotment. All money was called and duly received except on 10,000 shares on which only application money of Rs.3 per share was received. The company forfeited all the shares. 7,000 of forfeited shares were reissued at Rs.13 per share. State the amount of Securities Premium to be shown under the head “Reserves and Surplus”.
a) Rs. 20,00,000
b) Rs. 11,11,000
c) Rs. 8,11,000
d) Rs. 21,11,000
Answer: d

Question: Match the following :
a) Cumulative Pref. Share       i)Repaid after some time
b) Participating Pref. Share     ii) converts into equity shares
c) Redeemable Pref. shares    iii) Dividend accumulates if not paid
d) Convertible Pref. shares     iv) Gets share in surplus profit
The correct match is:
A) a-ii ,b-i, c-iii, d-iv
B) a-iii, b-iv, c-i, d-ii
C) a-iii, b-iv, c-ii ,d-i
D) a-ii, b-iv, c-iii, d-i
Answer: b

Question: Part of the issued capital offered for subscription to public is known as_________.
Answer: subscribed capital

Question: The application money should be refund within _______ days from the closure of the issue.
Answer: 15 days

Question: Actual number of shares offered to the public by the company for subscription is known as___________.
Answer: issued capital

Question: Excess balance amount of share forfeited account will be transferred to ___________ Account.
Answer: Capital Reserve

Question: Share capital of a company is divided into small units .Every unit is known as __________
Answer: Share

Question: At the time of forfeiture of shares Share Capital Account will be debited with ________________Value.
Answer: Called Up

Question: The options granted by the company to its employees and employee directors at a price that is lower than the market price is ______.
Answer: ESOP

Question: When the shares are issued at a price more than the face value, it is known as share issued at________
Answer: premium

Question: When the called up amount is not paid by the shareholders then it will be transferred to _________ Account.
Answer: Calls-in-arrears

Question: A company must receive minimum subscription of _____ of shares before it allots the share.
Answer: 90%

True/False:

Question: True/ False :
Securities premium received on issue of shares cannot be used for the purpose of buy back of shares.
Answer: False

Question: True/False-Share application amount is in the nature of Real account
Answer: False

Question: According to the below given information the final call per share is Rs.22.
The subscribed capital of a company is Rs. 80,00,000 and the nominal value of the share is Rs.100 each. There were no calls in arrear till the final call was made . The final call made was paid on 77,500 shares only . The balance in the calls in arrear amounted to Rs.55,000.
Answer: True

Question: When the shares are issued at a price more than face value it is said that shares are issued at premium.
Answer: True

Question: A Company can issue and allot shares to a select group of people privately.
Answer: True

Question: Equity share capital is also known as risk capital.;
Answer: True

Question: Securities premium reserve account will appear in the Balance Sheet
Answer: True

Question: When the shares subscribed are more than issued, it is known as undersubscribed of shares.
Answer: False

Question: Company can forfeit its shares.
Answer: True

Question: When 90% of the issued shares are subscribed by the public it is known as over subscription of shares.
Answer: False

Question: A Company can issue shares at discount to public
Answer: False

Question: A Company can issue shares more than Authorised.
Answer: False

Question: Reserve capital is a part of unsubscribed capital.
Answer: False