CBSE Class 12 Accountancy Share Capital Worksheet Set B

Question. Companies Act is governed by
a) RBI
b) SEBI
c) Partnership Act
d) Ministry of Corporate Affairs

Answer : D

Question. A company in which there is only one member is called
a) one member company
b) one person company
c) single company
d) individual company

Answer : B

Question. Balance of share forfeiture account is shown in the balance sheet under the item
a) current liabilities and provisions
b) reserves and surpluses
c) share capital
d) unsecured loans

Answer : C

Question. Shares can be forfeited
a) for non-payment of call money
b) for failure to attend meetings.
c) for failure to repay the loan to the bank
d) for which shares are pledged as a security.

Answer : A

Question. Which of the following is the registered capital of the company?
a) Nominal capital
b) Authorised capital
c) Share capital
d) Both (a) and (b)

Answer : D

Question. The balance of share forfeiture account can be used to
a) provide for discount given at the time of reissue
b) write-off preliminary expenses
c) write-off bad debts
d) None of the above

Answer : A

Question. Capital which is called only at the time of winding-up of the company is called
a) capital reserve
b) reserve capital
c) secure capital
d) authorised capital

Answer : B

Question. Own shares purchased by a company with a view to reduce its capital is called
a) sale
b) purchase
c) buy-back
d) private placement

Answer : C

Question. Which kind of preference share entitles its holders to receive arrear of dividends of previous years?
a) Cumulative preference share
b) Non-cumulative preference share
c) Convertible preference share
d) Non-convertible dividend share

Answer : A

Question. A company issued 10,000 shares of Rs 10 each. Amount is payable as Rs 2 on application, Rs 5 on allotment and Rs 3 on first and final call. A shareholder who had 1,000 shares failed to pay allotment and first call amount on due date. After a month, he paid the due amount. What will be the amount received by company against issue of shares?
a) Rs 92,000
b) Rs 90,000
c) Rs 1,00,000
d) Rs 8,000

Answer : C

Question. Shareholders receive ……… from the company as a benefit against their investment.
a) interest
b) commission
c) profit
d) dividend

Answer : D

Question. Shares for consideration other than cash can be issued at
a) par
b) premium
c) discount
d) Both (a) and (b)

Answer : D

Question. If company wants to calculate amount forfeited on reissued shares, then which amongst the given formula will be used?
a) Total Amount Forfeited /Number of Share Forfeited
b) Total Amount Forfeited /Number of Shares
c) Number of Share Forfeited /Total Amount Forfeited × Share Re-issues
d) Total Amount Forfeited /Number of Share Forfeited × Number of Share Re-issued

Answer : D

Question. Shares which have preferential rights are called
a) equity share
b) preference share
c) debenture
d) bond

Answer : B

Question. Singh who was allotted 200 equity share of Rs 20 each by a company, failed to pay Rs 8 each on final call. Shares were re-issued to Kumar at Rs 20 each. What will be the journal entry on re-issue?
a) Bank A/c                                      Dr          4,000
           To Equity Share Capital A/c                              4,000
b) Equity Share Capital A/c                Dr          4,000
           To Bank A/c                                                    4,000
c) Bank A/c                                      Dr           4,000
           To Share Forfeiture A/c                                    4,000
d) Share Forfeiture A/c                      Dr           4,000
           To Bank A/c                                                    4,000

Answer : A

Question. Total capital specified in capital clause is Rs 50,00,000 which is divided in 35,000 equity shares of Rs 100 each and 15,000, 10% preference shares of Rs 100 each. The company issued 10,000 equity shares and 5,000 preference shares. The public subscribed for 9,000 equity shares and 4,500 preference shares out of the issued shares. What will be the subscribed capital amount?
a) Rs 50,00,000
b) Rs 50,000
c) Rs 9,00,000
d) Rs 13,50,000

Answer : D

Question. Nominal share capital is
a) that part of the authorised capital which is issued by the company
b) the amount of capital which is actually applied for by the prospective shareholders
c) the maximum amount of share capital which a company is authorised to issue
d) the amount actually paid by the shareholders

Answer : C

Question. Which document is an invitation offer to public to subscribe for company’s share?
a) Red herring prospectus
b) Prospectus
c) In lieu of prospectus
d) None of the above

Answer : B

Question. Money received in advance from shareholders before it is actually called-up by the directors is
a) debited to calls-in-advance account
b) credited to calls-in-advance account
c) debited to calls account
d) None of the above

Answer : B

Question. A company issued 25,000 shares and received applications for 35,000 shares. Company wants to allot shares to everyone who has applied. What will be the ratio for allotment?
a) 6 : 7
b) 7: 5
c) 5 : 7
d) 7: 6

Answer : C

Question. Akash Ltd. registered capital is Rs 50,00,000 in shares of Rs 10 each. The company issued 2,00,000 of such shares, payable @ Rs 3 per share on allotment. What will be the amount due on allotment, if shareholder holding 20,000 shares paid all call money at the time of allotment only?
a) Rs 4,00,000
b) Rs 6,00,000
c) Rs 60,000
d) Rs 1,50,000

Answer : B

Question. The profit on reissue of forfeited shares is transferred to
a) general reserve
b) capital redemption reserve 
c) capital reserve
d) revenue reserve

Answer : C

Question. Amox Ltd. is registered with a capital of 10,00,000 equity shares of Rs 10 each. 6,00,000 equity shares were offered for subscription to public. Applications were received for 6,00,000 shares. All calls were made and amount was duly received except final call of Rs 2 on 80,000 shares. What will be the amount of share capital shown in the balance sheet?
a) Rs 60,00,000
b) Rs 58,40,000
c) Rs 5,84,000
d) Rs 6,00,000

Answer : B

Question. Amount payable on shares can be received in installments by the company. What is the first installment called?
a) Application money
b) Allotment money
c) First call money
d) Second call money

Answer : A

Question. Issued 10,000 shares of Rs 100 each to the Narayan Ltd. @10% premium and paid Rs 2,00,000 in cash for a consideration of running business purchased. Journalise this transaction.
a) Narayan Ltd.                    Dr 13,00,000
     To Share Capital A/c                                     10,00,000
     To Securities Premium Reserve A/c                1,00,000
     To Cash A/c                                                 2,00,000
b) Narayan Ltd.                     Dr 13,00,000
    To Share Capital A/c                                      13,00,000
c) Narayan Ltd.                     Dr 13,00,000
     To Cash A/c                                                  13,00,000
d) Share Capital A/c              Dr 10,00,000
    Securities Premium
    Reserve A/c                       Dr 1,00,000
    Cash A/c                           Dr 2,00,000
     To Narayan Ltd.                                             13,00,000

Answer : A

Question. The subscribed share capital of XYZ Ltd. is Rs 80,00,000 divided in shares of Rs 100 each. There were no calls-in-arrears till the final call was made. The final call was paid on 77,500 shares. The calls-in-arrears amounted to Rs 62,500. Calculate the final call per share.
a) Rs 20
b) Rs 30
c) Rs 25
d) Rs 35

Answer : C

Question. Which amongst the following shares conter voting rights on its holders?
a) Equity shares
b) Redeemable preference shares
c) Participatory preference shares
d) None of the above

Answer : A

Question. Pass the journal entry for amount of first call, Rs 90,000 received after deducting calls-in-arrears of Rs 6,000.
a) Bank A/c                                 Dr     90,000
    Calls-in-arrears A/c                  Dr      6,000
              To Share First Call A/c                         96,000
b) Share First Call A/c                  Dr     96,000
              To Bank A/c                                       90,000
              To Calls-in-arrears A/c                         6,000
c) Bank A/c                                  Dr    96,000
             To Share First Call A/c                         96,000
d) None of the above

Answer : A

Question. Neton Ltd. has in its memorandum of association, capital clause stating that it is formed with 75,000 equity shares of Rs 100 each. The company has issued the entire shares and the public has also subscribed and paid-up for the full amount on application itself. What will be the subscribed capital?
a) Rs 75,00,000
b) Rs 10,00,000
c) Rs 1,00,000
d) Rs 7,50,000

Answer : A

Question. If the purchase consideration is more than net worth, then 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 : 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 :-