Question : E Ltd. Had allotted 10,000 shares to the applicants of 14,000 shares on pro-rata basis. The amount payable on application was Rs. 5.F applied for 420 shares. What will be the number of shars allotted and the amount carried forward for adjustment against allotment money due from F in case of pro-rata allotment?
Shares Allotted 300;Amount adjusted against allotment Rs 240.
Question : State two essential features of a Private company 1.
Two essential features of a private company are :
(i) It restricts the right to transfer its shares.
(ii) It limits the number of its members to 200 (exclusive of past and present employees).
Question : Rajdhani Ltd., issued 50,000 shares of Rs. 10 each at a premium of 10% payable as Rs. 2 per share on application, Rs. 3 on allotment and Rs. 3 each on first and final call. Applications were received for 70,000 shares. It was decided that :
(a) Refuse allotment to the applicants for 10,000 shares
(b) Allot 20,000 shares to Mohan who had applied for similar number and
(c) Allot the remaining shares on pro-rata basis.
Mohan failed to pay the allotment money and Sohan whho belonged the category ‘C’ and was allotted 3,000 shares paid both the calls with allotment. Calculate the amount received on allotment.3
Question : (a) Amrit Ltd. Has a paid up share capital of Rs. 10 Crore and a balance of Rs. 2 Crore in Securities Premium Acount. The company management do not want to carry over this balance. State the purposes for which this balance can be utilised.
MCQ Questions for Chapter 1 Accounting for Share Capital
Question : The subscribed share capital of S Ltd. is ₹ 50,00,000 of ₹ 100 each. There were no calls in arrear till the final call was made. The final call made was paid on 42,500 shares. The calls in arrear amounted to ₹ 1,12,500. The Final Call on share :-
(a) ₹ 15 (b) ₹ 12.80 (c) ₹ 10 (d) ₹ 37.50
Use the following Information for Question no. 56 to 60 :-
Consider the following information pertaining to the issue of shares of a company. The company issued 10,000 shares of ₹ 15 each at a premium of ₹ 5 payable as :-
On Application ₹ 7; On Allotment ₹ 8 (including premium); On First Call ₹ 3; On Second and Final Call ₹ 2.
Mr. E who holds 150 shares failed to pay the first call money. The company has forfeited the 150 shares after the first call. The company has not yet demanded final call.
Question : Balance of Share Capital Account.
(a) ₹ 1,47,750 (b) ₹ 1,28,050 (c) ₹ 1,50,000 (d) None of these
Question : Balance of Security Premium Account.
(a) ₹ 50,000 (b) ₹ 49,250 (c) ₹ 49,500 (d) None of these
Question : The net balance of share forfeiture account.
(a) ₹ 2,250 (b) ₹ 1,500 (c) ₹ 1,950 (d) None of these
Question : On forfeiture, the amount debited to share capital account
(a) ₹ 2,200 (b) ₹ 2,000 (c) ₹ 1,950 (d) None of these
Question : Balance in bank account after share capital transactions.
(a) ₹ 1,79,550 (b) ₹ 1,80,000 (c) ₹ 1,99,550 (d) None of these
Use the following Information:-
D Ltd. issued 20,000 equity shares of ₹ 10 each at a premium of 20%. The share amount was payable as:-
On Application ₹ 2; On Allotment (including premium) ₹ 5; On First Call ₹ 3; On Second and Final Call ₹ 2.
Applications were received for 24,000 shares and the shares were allotted to applicants on pro-rata basis. E, who was allotted 400 shares, failed to pay the first call. On his subsequent failure to pay the second and final call, all his shares were forfeited. Out of the forfeited shares, 300 shares were re-issued @ ₹ 8 per share.
Question : Balance of Share Capital Account :-
(a) ₹ 1,96,000 (b) ₹ 1,99,000 (c) ₹ 2,00,000 (d) None of these
Question : Balance of Security Premium Account :-
(a) ₹ 40,000 (b) ₹ 39,200 (c) ₹ 39,800 (d) None of these
Question : On Forfeiture, the amount debited to share capital account :-
(a) ₹ 2,800 (b) ₹ 4,000 (c) ₹ 1,500 (d) None of these
Question : The amount transferred to Capital Reserve :-
(a) ₹ 225 (b) ₹ 1,200 (c) ₹ 900 (d) ₹ 1,500
Question : Balance in bank account after share capital transactions :-
(a) ₹ 2,40,400 (b) ₹ 2,40,000 (c) ₹ 2,28,000 (d) None of these
Question : Balance in Share Forfeiture Accounts :-
(a) ₹ 1,500 (b) ₹ 500 (c) ₹ 2,000 (d) None of these
Question : The following statements apply to equity/preference shareholders. Which one of them applies only to preference shareholders ?
(a) Shareholders risk the loss-of investment
(b) Shareholders bear the risk of no dividends in the event of losses
(c) Shareholders usually have the right to vote
(d) Dividends are usually a set amount in every financial year
Question : The Securities Premium Amount may be utilised by a company for _________.
(a) Writing off any loss on sale of fixed asset
(b) Writing off any loss of revenue nature
(c) payment of dividends
(d) Writing off the expenses/ discount on the issue of debentures.
The directors of R Ltd. forfeited 400 equity shares of ₹ 10 each for non-payment of first call of ₹ 3 per share. Final Call ₹ 2 per share was yet to be called. 150 shares were reissued as ₹ 8 paid up for ₹ 1,050.
Question : Select the correct option for effect on 'Equity Share Capital A/c' on forfeited of shares.
(a) Equity Share Capital A/c debited with ₹ 4,000 (b) Equity Share Capital A/c debited with ₹ 3,200
(c) Equity Share Capital A/c credited with ₹ 3,200 (d) Equity Share Capital A/c credited with ₹ 4,000
Question : Select the correct option for effect on 'Share Forfeiture A/c' on forfeited of shares.
(a) Share Forfeiture A/c is debited with ₹ 2,000 (b) Share Forfeiture A/c is debited with ₹ 2,000
(c) Share Forfeiture A/c is credited with ₹ 1,200 (d) Share Forfeiture A/c is credited with ₹ 2,000
Question : Select the correct option for effect on 'Equity Share Capital A/c' on reissue of forfeited shares.
(a) Equity Share Capital A/c credited with ₹ 4,000 (b) Equity Share Capital A/c debited with ₹ 2,000
(c) Equity Share Capital A/c credited with ₹ 1,200 (d) Equity Share Capital A/c credited with ₹ 3,200
Question : Select the correct option for effect on 'Share Forfeiture A/c' on reissue of forfeited shares.
(a) Share Forfeiture A/c is debited with ₹ 150 (b) Share Forfeiture A/c is debited with ₹ 750
(c) Share Forfeiture A/c is credited with ₹ 600 (d) Share Forfeiture A/c is credited with ₹ 150
Question : Select the correct option for balance in 'Calls in Arrears A/c' after reissue of forfeited shares.
(a) Debit balance in calls in arrears account ₹ 450 (b) Debit balance in calls in arrears account ₹ 750
(c) Debit balance in calls in arrears account ₹ 1,200 (d) None of these
Question : Select the correct option for transfer to 'Capital Reserve Account' after reissue of forfeited shares.
(a) Credited to Capital Reserve Account ₹ 450 (b) Credited to Capital Reserve Account ₹ 1,600
(c) Credited to Capital Reserve Account ₹ 600 (d) None of these
The directors of R Ltd. forfeited 400 equity shares of ₹ 10 each for non payment of first call of ₹ 3 per share. Final Call ₹ 2 per share was yet to be called. 150 shares were reissued as ₹ 8 paid up for ₹ 1,350.
Question : Select the correct option for transfer to 'Capital Reserve Account' after reissue of forfeited shares.
(a) Credited to Capital Reserve Account ₹ 750 (b) Credited to Capital Reserve Account ₹ 1,600
(c) Credited to Capital Reserve Account ₹ 900 (d) None of these
Question : Select the correct option for effect on 'Share Forfeiture A/c' on reissue of forfeited shares.
(a) Share Forfeiture A/c is debited with ₹ 150 (b) Share Forfeiture A/c is debited with ₹ 750
(c) Share Forfeiture A/c is credited with ₹ 600 (d) None of these
The directors of R Ltd. forfeited 500 equity shares of ₹ 10 each issued at 10% premium (premium received with allotment) for non payment of first call of ₹ 3 per share. Final call ₹ 2 per share was yet to be called. 200 shares were reissued as ₹ 8 paid up for ₹ 1,500.
Question : Select the correct option for transfer to 'Capital Reserve Account' after reissue of forfeited shares.
(a) Credited to Capital Reserve Account ₹ 750 (b) Credited to Capital Reserve Account ₹ 1,600
(c) Credited to Capital Reserve Account ₹ 900 (d) None of these
J Ltd. forfeited 300 shares of ₹ 100 each (out of 50,000 shares issued) for non payment of last call of ₹ 25 per share. Out of these 100 shares were reissued at ₹ 45 per share.
Question : Select the correct option for effect on balance in "Share Capital A/c" was _________ after reissue of share.
(a) ₹ 50,00,000 (b) ₹ 49,70,000 (c) ₹ 49,80,000 (d) None of these
Question : Select the correct option for effect on Balance in "Calls in Arrears A/c'' was ₹ _________ after reissue of share.
(a) ₹ 7,500 (b) ₹ 2,500 (c) ₹ 5,000 (d) None of these
Question : Select the correct option for effect on balance in "Share Forfeiture A/c" was __________ after reissue of share.
(a) ₹ 15,000 (b) ₹ 22,500 (c) ₹ 7,500 (d) None of these
Question : Select the correct option for effect on profit on reissue of shares transferred to "Capital Reserve A/c" was ___________ after reissue of shares.
(a) ₹ 4,500 (b) ₹ 2,000 (c) ₹ 5,500 (d) None of these
Question : Select the correct option for effect on amount disclosed in balance sheet (as prescribed in Schedule. VI) under the head 'Share Capital A/c'.
(a) ₹ 49,80,000 (b) ₹ 49,95,000 (c) ₹ 50,00,000 (d) None of these
Details of Aman Ltd. - Share issued 1,00,000 shares of ₹ 50 each; Amount called up ₹ 40 per share; Share Forfeited 500 shares for non payment of First Call ₹ 10; Shares Reissued 200 shares at ₹ 25 per share.
Question : Select the correct option for effect on balance in "Share Capital A/c" was ___________ after reissue of share.
(a) ₹ 50,00,000 (b) ₹ 39,80,000 (c) ₹ 39,88,000 (d) ₹ 40,00,000
Question : Select the correct option for effect on Balance in "Calls in Arrear A/c" was __________ after reissue of share.
(a) ₹ 5,000 (b) ₹ 2,000 (c) ₹ 3,000 (d) Nil
Question : Select the correct option for effect on balance in "Share Forfeiture A/c" was ___________ after reissue of share.
(a) ₹ 15,000 (b) ₹ 9,000 (c) ₹ 6,000 (d) None of these
Question : Select the correct option for effect on profit on reissue of shares transferred to 'Capital Reserve A/c' was ₹ ____________ after reissue of shares.
(a) ₹ 7,500 (b) ₹ 3,000 (c) ₹ 9,000 (d) None of these
Question : Select the correct option for effect on amount disclosed in balance sheet (as prescribed in Schedule VI) under the head "Share Capital A/c".
(a) ₹ 39,88,000 (b) ₹ 39,80,000 (c) ₹ 39,97,000 (d) None of these
Details of Dennis Ltd. - Share Issued 1,00,000 shares of ₹ 50 each; Amount called up ₹ 40 per share;
Share Forfeited 500 shares for non-payment of First Call ₹ 10 per share; Shares Reissued 200 shares at ₹ 30 per share fully paid up.
Question : Select the correct option for effect on balance in "Share Forfeiture A/c" was _________ after reissue of share.
(a) ₹ 15,000 (b) ₹ 9,000 (c) ₹ 6,000 (d) None of these
Question : Select the correct option for net amount disclosed in balance sheet (as prescribed in Schedule VI) under the head 'Share Capital' was ____________.
(a) ₹ 39,88,000 (b) ₹ 39,99,000 (c) ₹ 39,97,000 (d) None of these
R Ltd. forfeited 1,000 equity shares out of 50,000 shares of ₹ 50 each issued to public at 10% premium, for non payment of allotment ₹ 20 (including premium). Last Call of ₹ 15 was called after forfeiting the shares and was duly received. Directors reissued 600 shares at 10% discount as fully paid.
Question : Select the correct option for balance in "Share Capital A/c was __________ after reissue of shares.
(a) ₹ 25,00,000 (b) ₹ 24,80,000 (c) ₹ 24,50,000 (d) None of these
Question : Select the correct option for balance in "Calls in Arrears A/c" was ___________ after reissue of shares.
(a) ₹ 20,000 (b) ₹ 8,000 (c) ₹ 15,000 (d) Nil
Question : Select the correct option for balance in "Share Forfeiture A/c" was __________ after reissue of shares.
(a) ₹ 20,000 (b) ₹ 12,000 (c) ₹ 8,000 (d) Nil
Question : Select the correct option for profit on reissue of shares transferred to 'Capital Reserve A/c' was ___________.
(a) ₹ 9,000 (b) ₹ 12,000 (c) ₹ 3,000 (d) None of these
Question : Select the correct option for net amount disclosed in balance sheet (as per schedule VI) under the head share capital was ____________.
(a) ₹ 24,80,000 (b) ₹ 25,00,000 (c) ₹ 24,88,000 (d) None of these.
Question : Select the correct option for amount received on demand of last call ___________.
(a) ₹ 7,50,000 (b) ₹ 7,41,000 (c) ₹ 7,35,000 (d) None of these
Question : Select the correct option for balance of 'Security Premium A/c' was ₹ __________ after reissue of shares.
(a) ₹ 2,50,000 (b) ₹ 24,80,000 (c) ₹ 2,45,000 (d) None of these
S Ltd. forfeited 1,000 equity shares out of 50,000 shares of ₹ 50 each issued to public at 10% premium, for non payment of allotment ₹ 25 (including premium). Last call of ₹ 10 was not demanded on these shares. Directors of S Ltd. reissued 700 shares out of forfeited shares at ₹ 60 per share as fully paid up.
Question : Select the correct option for effect on 'Equity Share Capital A/c' on forfeiture of shares.
(a) Equity Share Capital A/c debit ₹ 50,000 (b) Equity Share Capital A/c debit ₹ 40,000
(c) Equity Share Capital A/c debit ₹ 45,000 (d) None of these
Question : Select the correct option for effect on 'Share Forfeiture A/c' on forfeiture of shares.
(a) Share Forfeiture A/c credit ₹ 20,000 (b) Share Forfeiture A/c debit ₹ 20,000
(c) Share Forfeiture A/c credit ₹ 15,000 (d) None of these
Question : Select the correct option for effect on 'Equity Share Capital A/c' on reissue of forfeited shares.
(a) Equity Share Capital A/c credit ₹ 40,000 (b) Equity Share Capital A/c credit ₹ 35,000
(c) Equity Share Capital A/c credit ₹ 28,000 (d) None of these
Question : Select the correct option for effect on 'Share Forfeiture A/c' on reissue of forfeited shares.
(a) Share Forfeiture A/c credit ₹ 20,000 (b) Share Forfeiture A/c debit ₹ 20,000
(c) Share Forfeiture A/c debit ₹ 14,000 (d) No effect on Share Forfeiture A/c
Question : Select the correct option for profit on reissue of forfeited shares transferred to 'Capital Reserve A/c'.
(a) ₹ 20,000 (b) ₹ 14,000 (c) ₹ 7,000 (d) None of these
Question : Select the correct option for balance in 'Security Premium A/c' after reissue of forfeited shares.
(a) ₹ 2,50,000 (b) ₹ 2,45,000 (c) ₹ 2,52,000 (d) None of these
Question : Select the correct option for net amount disclosed in Balance Sheet (as per schedule VI) under the head 'Share Capital'.
(a) ₹ 20,00,000 (b) ₹ 20,01,000 (c) ₹ 19,88,000 (d) None of these
Question : Select the correct option for 'Bank Balance' left after recording transactions relating issued and forfeiture of shares.
(a) ₹ 22,67,000 (b) ₹ 22,53,000 (c) ₹ 20,01,000 (d) None of these
Question : A Ltd. forfeited 800 equity shares out of 1,00,000 equity shares of ₹ 20 each issued at 5% discount, for non payment of allotment ₹ 7 per share (including discount). First and Final Call of ₹ 5 was not demanded on these shares. Directors of A Ltd. reissued 500 shares out of forfeited shares at ₹ 16 per share as fully paid up.
Select the correct option for effect on 'Equity Share Capital A/c' on forfeiture of Share.
(a) Equity Share Capital A/c debit ₹ 12,000 (b) Equity Share Capital A/c debit ₹ 16,000
(c) Equity Share Capital A/c debit ₹ 12,800 (d) None of these
Question : Select the correct option for effect on 'Share Forfeiture A/c' on forfeiture of share.
(a) Share Forfeiture A/c credit ₹ 6,400 (b) Share Forfeiture A/c credit ₹ 5,600
(c) Share Forfeiture A/c credit ₹ 4,800 (d) None of these
Question : Select the correct option for Balance in 'Share Discount A/c' after forfeiture of shares.
(a) Debit Balance ₹ 1,00,000 (b) Debit Balance ₹ 92,700
(c) Debit Balance ₹ 92,200 (d) None of these
Question : Select the correct option for effect on Equity Share Capital A/c' on reissue of forfeited shares.
(a) Equity Share Capital A/c Credit ₹ 12,000 (b) Equity Share Capital A/c Credit ₹ 7,500
(c) Equity Share Capital A/c Credit ₹ 7,000 (d) None of these
Question : Select the correct option for effect on 'Share Forfeiture A/c' on reissue forfeited shares.
(a) Share Forfeiture A/c debit ₹ 1,500 (b) Share Forfeiture A/c debit ₹ 2,000
(c) Share Forfeiture A/c debit ₹ 1,000 (d) None of these
Question : Select the correct option for balance in 'Share Discount A/c' after reissue of forfeited shares.
(a) Debit Balance ₹ 1,00,000 (b) Debit Balance ₹ 92,700
(c) Debit Balance ₹ 92,200 (d) None of these
Question : Select the correct option for proportion reissue of forfeited shares transferred to 'Capital Reserve A/c'.
(a) ₹ 2,500 (b) ₹ 1,500 (c) ₹ 2,000 (d) None of these
Question : Select the correct option for balance in ''Share Capital A/c'' after reissue of forfeited shares.
(a) Credit Balance ₹ 19,40,000 (b) Credit Balance ₹ 14,95,000
(c) Credit Balance ₹ 14,88,000 (d) None of these
Question : Select the correct option for Balance in "Bank A/c" after reissue of forfeited shares.
(a) Debit Balance ₹ 19,44,600 (b) Debit Balance ₹ 15,02,100
(c) Debit Balance ₹ 14,09,400 (d) None of these