Practice Test

Q1) Which of the following section of the Companies Act, 2013 prohibits to issue of shares at discount? Show Answer

Q2) Equity shareholder is - Show Answer

Q3) ….. have the right to vote on any resolution placed before the company or general meeting. Show Answer

Q4) Amount of capital stated in the Memorandum of Association as the share capital of the company is known as -
(1) Subscribed or Authorized Capital
(2) Paid-up or Subscribed Capital
(3) Nominal or Called-up Capital
(4) Nominal or Authorized Capital
The correct answer is -
Show Answer

Q5) __________ refers to that part of the authorized capital which has actually been offered to the public for subscription. Show Answer

Q6) ….. refers to that part of the issued capital which has actually been subscribed by the public. Show Answer

Q7) Public companies issue shares to public through document called - Show Answer

Q8) __________ 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. Show Answer

Q9) Issuer company cannot make allotment of shares unless - Show Answer

Q10) The minimum subscription is the of the issued amount. Show Answer

Q11) When face value of shares is less than issue price then shares are said to be issued at - Show Answer

Q12) When shares are issued at a price less than the face value, they are said to be issued at - Show Answer

Q13) As per the Companies Act, 2013 the companies cannot use the balance of securities premium for - Show Answer

Q14) When shares are not payable in a lump sum, second installment is called - Show Answer

Q15) When shares are not payable in a lump sum, third installment is called - Show Answer

Q16) Premium on issue of shares must be treated as - Show Answer

Q17) Premium on issue of shares must be credited to a separate account called - Show Answer

Q18) Securities premium account must be shown separately on the liabilities side of the balance sheet in ….. under the heading ….. Show Answer

Q19) Which of the following type of security can be issued al discount as per Companies Act, 2013?
(1) Equity Shares
(2) Sweat Equity Shares
(3) Preference Shares
(4) Debentures
(5) Bonds
Select the correct answer from the options given below -
Show Answer

Q20) Which of the following Table of Schedule I to the Companies Act, 2013 contains the provisions relating to Calls- in-Advance & Calls-in-Arrears? Show Answer

Q21) Amount received as calls-in-advance is a _____ of the company. Show Answer

Q22) Amount due on calls made but not paid is known as - Show Answer

Q23) If the number of shares issued for is more than the number of shares applied the shares are said to be - Show Answer

Q24) If the number of shares applied for is more than the number of shares issued the shares are said to be - Show Answer

Q25) In case of oversubscription of shares each applicant receives the shares in some proportion, it is known as - Show Answer

Q26) If authorized by the ….., a company may receive from a shareholder the amount remaining unpaid on shares, even though the amount has not been called up which is known as calls-in-advance. Show Answer

Q27) __________ paid on calls-in-advance. Show Answer

Q28) As per Table F of Schedule I of the Companies Act, 2013, interest on calls in advance can be paid at _____ p.a. Show Answer

Q29) As per Table F of Schedule I to the Companies Act, 2013, interest on calls in arrear can be received at ….. p.a. Show Answer

Q30) Interest on calls-in-advance is paid for the period from the - Show Answer

Q31) Balance of interest on calls-in-arrear account is transferred to ….. at the end of the year. Show Answer

Q32) Balance of interest on calls-on-advance account is transferred to the ….. at the end of the year. Show Answer

Q33) A company may allot fully paid shares to promoters or any other party for the services rendered by them, share capital account is credited and ….. debited. Show Answer

Q34) ….. may be said to be the compulsory termination of membership by way of penalty for non-payment of allotment and/or any call money. Show Answer

Q35) Which of the following security can be forfeited for non-payment of allotment or call money?
(I) Equity Shares
(II) Equity Shares, Preference Shares
(III) Preference Shares, Equity Shares & Debentures
(IV) Debentures
Select the correct answer from the options given below -
Show Answer

Q36) Which of the following security cannot be forfeited for non-payment of allotment or call money? Show Answer

Q37) Shares forfeited account is to be shown in the balance sheet by way of ….. to the paid up share capital on the liabilities side until the concerned shares are re-issued. Show Answer

Q38) The forfeited shares may be re-issued -
(I) at par only
(II) at par or at premium only
(III) at par or at discount only
(IV) at par or at premium or at discount
The correct answer is -
Show Answer

Q39) If a company receives excess appli¬cation 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? Show Answer

Q40) Balance of share forfeiture account remaining after reissue is transferred to: Show Answer

Q41) If forfeited shares are re-issued at a premium, the amount of such premium should be credited to - Show Answer

Q42) Shareholders are the ….. of the company. Show Answer

Q43) Dividends are _____ of profits. Show Answer

Q44) Final accounts of companies are prepared according to _____ of the Companies Act, 2013. Show Answer

Q45) The company may allot shares to the vendors for acquiring some assets as payment for purchase consideration, such issue of shares to vendors is known as issue of shares for - Show Answer

Q46) The balance in capital redemption reserve is available for - Show Answer

Q47) Which of the following false? Show Answer

Q48) N Ltd. issued 1,00,000 equity shares of Rs. 10 each to the public at par. Full amount payable at the time of application. Application were received for 1,20,000 shares. Excess application monies were refunded. Amount to be credited to share capital account should be - Show Answer

Q49) S Ltd. issued 1,00,000 equity shares of Rs. 10 each at a premium of Rs. 2 per share to the public. Full amount payable at the time of application. Application were received for 1,20,000 shares. Excess application monies were refunded. Amount to be credited to share capital account should be - Show Answer

Q50) 10,000 equity shares of Rs. 10 each were issued to public at a premium of Rs. 2 per share. Application were received for 12,000 shares. Securities premium account .will be credited by - Show Answer

Q51) The subscribed share capital of S Ltd. is Rs. 80,00,000 of Rs. 100 each. There were no calls in arrear till the final call was made. The final call made was paid on 77,500 shares. The calls in arrear amounted to Rs. 62,500. The final call per share = ? Show Answer

Q52) A Ltd. acquired assets worth Rs. 71,25,000 form H Ltd. by issue of shares of Rs. 10 @ premium of Rs. 25%. The number of shares issued to settle the purchase consideration will be - Show Answer

Q53) N Ltd. has allotted 10,000 shares to the applicants of 14,000 shares on pro rata basis. The amount payable on application is Rs. 2. Ram applied for 420 shares. The number of shares allotted and amount carried forward for adjustment against allotment - Show Answer

Q54) Following information pertains toXLtd.
Called-up share capital = Rs. 5,00,000
Calls-in-arrear = Rs. 40,000
Calls-in-advance = Rs. 25,000
Proposed dividend = 15%
The amount of dividend payable is _____
Show Answer

Q55) R Ltd. purchased the business of C Ltd. for Rs. 2,70,000 payable in fully paid shares. R Ltd. allotted equity shares of Rs. 10 each fully paid in satisfaction of the claim by C Ltd. Such shares are issued at par. The number of shares to be issued by R Ltd. to settle the purchase consideration = ? Show Answer

Q56) R Ltd. purchased the business of C Ltd. for Rs. 2,70,000 payable in fully paid shares. R Ltd. allotted equity shares of Rs. 10 each fully paid in satisfaction of the claim by C Ltd. Such shares are issued at premium of 20%. Number of shares to be issued by R Ltd. to settle the purchase consideration = ? Show Answer

Q57) X was issued 100 shares of Rs. 10 each at a premium of Rs. 1, he paid application money which in total amounted to Rs. 5 (excluding premium) and failed to balance call money of Rs. 5. Find the maxi mum discount that can be given at the time of re-issue of shares. Show Answer

Q58) S Ltd. acquired fixed assets worth Rs. 15,00,000 by issue of shares of Rs. 100 at a premium of 25%. The number of shares to be issued by S Ltd. to settle the purchase consideration = ? Show Answer

Q59) Q Ltd. had allotted 1,00,000 shares to the applicants of 1,40,000 shares on pro rata basis. The amount payable on application is Rs. 2. Mr. N applied for 4,200 shares. The
number of shares allotted and the amount carried forward for adjustment against allotment money due from Mr. N = ?
Show Answer

Q60) R Ltd. forfeited 300 equity shares of Rs. 10 fully called-up, held by Mr. X for non¬payment of first call of Rs. 2 and final of Rs. 3 each. However, he paid application money @ Rs. 2 per share and allotment money @ Rs. 3 per share. At the time of forfeiture Share Capital A/c will be credited by Show Answer

Q61) R Ltd. forfeited 300 equity shares of Rs. 10 fully called-up, held by Mr. X for non¬payment of first call of Rs. 2 and final of Rs. 3 each. However, he paid application money @ Rs. 2 per share and allotment money @ Rs. 3 per share. These shares were reissued at Rs. 70 each. Amount to be transferred to Capital Reserve Account = ? Show Answer

Q62) R Ltd. forfeited 300 equity shares of Rs. 10 fully called-up, held by Mr. X for non¬payment of first call of Rs. 2 and final of Rs. 3 each. However, he paid application money @ Rs. 2 per share and allotment money @ Rs. 3 per share. These shares were reissued at Rs. 7 each. Amount to be transferred to Capital Reserve Account = ? Show Answer

Q63) R Ltd. forfeited 300 equity shares of Rs. 10 fully called-up, held by Mr. X for non¬-payment of first call of Rs. 2 and final of Rs. 3 each. However, he paid application money @ Rs. 2 per share and allotment money @ Rs. 3 per share. These shares were reissued at Rs. 12 each. Amount to be transferred to Capital Reserve Account = ? Show Answer

Q64) T Ltd. forfeited 500 equity shares of Rs. 10 fully called-up, held by Mr. Ram for non-payment of allotment money of Rs. 5 (including Rs. 2 premium), first call of Rs. 2 and final of Rs. 3 each. However, he paid application money @ Rs. 2 per share. These shares were reissued at Rs. 10 each.
On reissue amount to be transferred to capital reserve account = ?
Show Answer

Q65) T Ltd. forfeited 500 equity shares of Rs. 10 fully called-up, held by Mr. Ram for non-payment of allotment money of Rs. 5 (including Rs. 2 premium), first call of Rs. 2 and final of Rs. 3 each. However, he paid application money @ Rs. 2 per share. These shares were reissued at Rs. 9 each.
On reissue amount to be transferred to capital reserve account = ?
Show Answer

Q66) T Ltd. forfeited 500 equity shares of Rs. 10 fully called-up, held by Mr. Ram for non-payment of allotment money of Rs. 5 (including Rs. 2 premium), first call of Rs. 2 and final of Rs. 3 each. However, he paid application money @ Rs. 2 per share. These shares were reissued at Rs. 13 each.
On reissue amount to be transferred to capital reserve account = ?
Show Answer

Q67) W Ltd. forfeited 400 equity shares of Rs. 10 fully called-up, held by Mr. P for non¬payment of final of Rs. 3 each. However, he paid application money @ Rs. 2, Allotment Rs. 2 and first call Rs. 3 per share. These shares were reissued at Rs. 10 each.
On reissue amount to be transferred to capital reserve account = ?
Show Answer

Q68) W Ltd. forfeited 400 equity shares of Rs. 10 fully called-up, held by Mr. P for non¬payment of final of Rs. 3 each. However, he paid application money @ Rs. 2, Allotment Rs. 2 and first call Rs. 3 per share. These shares were reissued at Rs. 7 each.
On reissue amount to be transferred to capital reserve account = ?
Show Answer

Q69) W Ltd. forfeited 400 equity shares of Rs. 10 fully called-up, held by Mr. P for non¬payment of final of Rs. 3 each. However, he paid application money @ Rs. 2, Allotment Rs. 2 and first call Rs. 3 per share. These shares were reissued at Rs. 13 each.
On reissue amount to be transferred to capital reserve account = ?
Show Answer

Q70) X Ltd. forfeited 200 equity shares of Rs. 10 each, Rs. 8 called-up for non-payment of first call money @ Rs. 2 each. Application money @ Rs. 2 per share and allotment money @ Rs. 4 per share have already been received by the company. Out of these 150 share were reissued at 7 per share as showing Rs. 8 paid up.
On reissue amount to be transferred to capital reserve account = ?
Show Answer

Q71) Jindal Ltd. forfeited 400 equity shares of Rs. 10 each, issued at par, held by Mr. X for non-payment of the first call of Rs. 2 per share and the final call of Rs. 3 per share. Out of these 250 equity shares were re-issued to Mr. Y Rs. 8 per share and the rest of these were re-issued to Mr. Z at Rs. 7 per share. On reissue amount to be transferred to Capital Reserve Account = ? Show Answer

Q72) A company has subscribed capital of 2,00,000 equity shares of Rs. 25 each, Rs. 20 per share called up. The directors forfeited 200 equity held by a shareholder who failed to pay the first call made @ Rs. 10 per share. Later, the directors reissued these shares as Rs. 20 per share paid up at Rs. 15 per share. On reissue amount to be transferred to capital reserve account = ? Show Answer

Q73) Due to non-payment of first call of Rs. 3 per share, Mona Ltd. forfeited 100 shares of Rs. 10 each, which were issued at par, Rs. 8 per share were called-up till date. Of these
forfeited shares. 80 shares were issued subsequently by Mona Ltd., at Rs. 5 as Rs. 8 paid-upper share. On reissue amount to be transferred to capital reserve account = ?
Show Answer

Q74) Sukriti Ltd. forfeited 100 shares of Rs. 10 each for non-payment of final call of Rs. 2. Of these, 60 shares were re-issued @ Rs. 9 per share as fully paid. On reissue amount to be transferred to capital reserve account = ? Show Answer

Q75) Z Ltd.issued 10,000sharesof Rs. lOeach. The called up value per share was Rs. 8. The company forfeited 200 shares of Mr. A for non-payment of 1st call money of Rs. 2 per share. He paid Rs. 6 for application and allotment money. On forfeiture, the share capital account will be Show Answer

Q76) Alex Ltd. forfeited 100 shares of Rs. 10 each issued at a premium of 20% (to be paid at the time of application money) on which allotment money of Rs. 4 and first call money of Rs. 3 were not received; the final call money of Rs. 2 is not yet called. These shares were originally allotted in the ratio of 4:5. These shares were subsequently re-issued at a discount of Rs. 1 per share, credited as Rs. 8 paid-up.
On reissue amount to be transferred to capital reserve account = ?
Show Answer

Q77) X Ltd. made a final call on equity shares @ Rs. 20 each. Face value of shares is Rs. 100. One shareholder 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 = ? Show Answer

Q78) X Ltd. made a final call on equity shares @ Rs. 20 each. Face value of shares is Rs. 100. One shareholder holding 500 shares had paid the final call before 4 months 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-Advance = ? Show Answer

Q79) Z Ltd. made the first call of Rs. 30 per share on 15.1.2015. The last date of payment of call money was 31.1.2015. Mr. N, holding 50,000 shares paid the call money on 15.3.2015. The company had adopted Table F of Schedule I to the Companies Act, 2013, the amount of interest on Calls- in Arrear = ? Show Answer

Q80) On 1.1.2015, X Ltd. makes an issue of 1,00,000 equity shares of Rs. 100 each payable as follows:
Application Rs. 20
Allotment 30
Final Call 50 (3 months after allotment)
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 allows interest, according to the Table F of Schedule I to the Companies Act, 2013. Amount of interest on calls-in- arrear = ?
Show Answer

Q81) On 1.1.2015, X Ltd. marks an issue of 1,00,000 equity shares of Rs. 100 each payable as follows:
Application Rs. 20
Allotment 30
Final call 50 (3 months after allotment)
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 allows interest, according to the Table F of Schedule I to the Companies Act, 2013. Interest on calls-in-advance = ?
Show Answer

Q82) W Ltd. issued 2,00,000 shares of Rs. 100 each at a premium of 20% on May 01,2015, payable as follows:
On application (including premium) Rs. 45
On allotment Rs. 25
On first & final call Rs. 50
Sunil to whom 10,000 shares were allotted, has paid Rs. 5,00,000 on June 01,2015. At the time of remitting the allotment money, he indicated that the excess money should be adjusted towards the call money. The directors of the company made the first and final call on October 31, 2015. The company has a policy of paying interest on calls-in-advance as per Table F of Schedule I to the Companies Act, 2013. The amount of interest paid to Sunil on Calls-in-Advance will be
Show Answer

Q83) Director of ZPA Ltd. made a final call of Rs. 50 per share on 1 st August, 2015 indicating the last date of payment of call to be 31st August, 2015. Mr. Black holding 5,000 shares paid the call money on 15 October, 2015. The company has a policy of paying interest on calls-in-arrear as per Table F of Schedule I to the Companies Act, 2013. Interest on calls-in-arrear = ? Show Answer

Q84) Director of NSZ Ltd. made a final call of Rs. 50 per share on 1st August, 2015 indicating the last date of payment of call to be 31st August, 2015. Mr. Black holding 8,000 shares paid the call money on 15 June, 2015 along with first call-in-advance. The company has a policy of paying interest on calls-in-advance as per Table F of Schedule I to the Companies Act, 2013. Interest on calls-in-advance = ? Show Answer

Q85) N Ltd. purchased fixed asset of Rs. 28,80,000. The consideration was paid by issue of shares of Rs. 100 each at 20% premium.
No of shares to be issued -
Show Answer

Q86) Z Ltd. proposed to issue 1,00,000 equity shares of Rs. 100 each at a premium of 20%. The minimum amount of application money to be collected per share as per the Companies Act, 2013 will be - Show Answer

Q87) Z Ltd. proposed to issue 1,00,000 equity shares of Rs. 100 each at a premium of 20%. The minimum amount of application money to be collected per share as per the SEBI Regulations will be - Show Answer

Q88) Discount on issue of debentures is a - Show Answer

Q89) Which of the following section of the Companies Act, 2 013 deals with provisions relating to right issue of shares? Show Answer

Q90) Provisions relating to right issue of shares as contained in Section 62 of the Companies Act, 2013 applies to - Show Answer

Q91) __________ are shares issued by a company free of cost to its existing shareholders Show Answer

Q92) The offer for right shares shall be made by notice specifying the number of shares offered, time for accepting offer which may be minimum _____ and maximum _____ Show Answer

Q93) Bonus shares are shares issued by a company free of cost to its existing shareholders on a pro rata basis out of: Show Answer

Q94) If offer for right shares is not accepted within period specified then - Show Answer

Q95) Right shares can be offered by the companies to existing shareholders by passing - Show Answer

Q96) Which of the following section of the Companies Act, 2013 deals with provisions relating to bonus issue of shares? Show Answer

Q97) Right shares can be offered by the companies to employees under a scheme of employees stock option by passing _____ and complying with prescribed conditions. Show Answer

Q98) A company cannot issue fully paid-up bonus shares to its members out of: Show Answer

Q99) Right shares can be offered by the companies to persons other than existing shareholders or employees by passing a: Show Answer

Q100) If company makes bonus issue at 2:3 then it means - Show Answer

Q101) The notice relating to offer for right issue shall be dispatched through - Show Answer

Q102) Which of the following can be used for issuing bonus shares? Show Answer

Q103) The notice relating to offer for right issue shall be dispatched through registered post or speed post or through electronic mode to all the existing shareholders at least __________ before the opening of the issue. Show Answer

Q104) Value of the right = ? Show Answer

Q105) Which of the following statement is true if company issues bonus shares? Show Answer

Q106) Bonus issue must be authorized - Show Answer

Q107) Which of the following can be utilized for issue of bonus shares?
1. Balance of profits & loss account
2. Capital Reserve
3. Dividend Equalization Fund
4. Development Rebate Reserve
5. Profit Prior to Incorporation
Select the correct answer from the options given below -
Show Answer

Q108) Bonus issue can be made on - Show Answer

Q109) Which of the following condition of Section 63 is required to be complied by the company before making bonus issue? Show Answer

Q110) Which of the following statement is false? Show Answer

Q111) Which of the following is correct journal entry for issue of bonus shares? Show Answer

Q112) For which one or more of the following reasons could a balance in the share premium be applied?
(a) To issue bonus shares.
(b) For distribution to shareholders as dividend.
(c) To write down the value of assets, particularly when they are impaired.
(d) To write off expenses of and com¬mission on issuing the same shares
Select the correct answer from the options given below -
Show Answer

Q113) A company has decided to increase its existing share capital by making rights
issue to the existing shareholders in the proportion of 1 new share for every 2 old shares held. You are required to calculate the value of the right if the market value of share at the time of announcement of right issue is Rs. 576. The company has decided to give one share of Rs. 100 each at a premium of Rs. 188 each.
Show Answer

Q114) A Ltd. has 20,000 Equity Shares of Rs. 10 each. Balance of Profit & Loss Account is Rs. 1,40,000. It has issued 6% Debentures in the past of Rs. 1,20,000.
At the annual general meeting it was resolved that:
(i) To pay a dividend of 10% in cash. Corporate dividend tax rate is 17%.
(ii) To issue 1 bonus share for every 4 shares held after 1 month of right issue.
(iii) To give existing shareholder right to purchase one Rs. 10 share for every 4 shares held. All the shareholders exercised the right.
(iv) To repay debentures at a premium of 5%.
Balance of Profit &. Loss A/c after giving effect to above transactions will be -
Show Answer

Q115) Anuj Ltd. had an accumulated amount of general reserve of Rs. 5,00,000 and Securities Premium Rs. 70,000. The directors of Anuj Ltd. decided to declare bonus shares out of the general reserve and to utilize the di vidend in the following manner:
(i) To make 10,000 partly paid shares of Rs. 10 each paid-up at Rs. 6 each, as fully paid-up.
(ii) To distribute 4 fully paid bonus shares of Rs. 10 each at Rs. ¡2 each, for 5 fully paid existing 20,000 shares of Rs. 10 each.
What are the balances of General Reserve and Securities Premium Accounts after giving effect to above transactions?
Show Answer

Q116) F Ltd. is planning to raise funds by making rights issue of equity shares to part finance its expansion. The existing equity share capital of the company is Rs. 120 lakh and the market value is Rs. 135 per share. The company offered to its shareholders the right to buy 2 shares at Rs. 36 each for every 5 shares held. You are required to calculate value of rights. Show Answer

Q117) Preference shares are those which carry the preferential rights as to - Show Answer

Q118) __________ will be entitled to receive arrears of their dividend. Show Answer

Q119) Which of the following section of the Companies Act, 2013 prohibits to issue of shares at discount? Show Answer

Q120) Which of the following right may be given to preference shareholder if provided by Articles? Show Answer

Q121) Which of the following rights may be given to preference shareholder if provided by Articles? Show Answer

Q122) Which of the following type of security can be issued at discount as per Companies Act, 2013?
(1) Equity Shares
(2) Sweat Equity Shares
(3) Preference Shares
(4) Debentures
(5) Bonds
Select the correct answer from the options given below -
Show Answer

Q123) Which of the following security can be forfeited for non-payment of allotment or call money?
(I) Equity Shares
(II) Equity Shares, Preference Shares
(III) Preference Shares, Equity Shares & Debentures
(IV) Debentures
Select the correct answer from the options given below -
Show Answer

Q124) Dividends are of profits. Show Answer

Q125) A company limited by shares may, if authorized by its can issue preference shares which are or at the option of the company are liable to be redeemed Show Answer

Q126) The preference shares can be redeemed: Show Answer

Q127) When preference shares are redeemed out of profits such profit must be - Show Answer

Q128) Only preferences shares can be redeemed. Show Answer

Q129) If any premium is to be payable on redemption of preference share, such premium has to be provided - Show Answer

Q130) Where preferences shares are redeemed out of profits, a sum equal to the nominal amount of the shares so redeemed must be transferred to - Show Answer

Q131) Capital Redemption Reserve Account may be applied to issue - Show Answer

Q132) No company limited by shares, issue any preference shares which is redeemable after the expiry of a period of _____ from the date of issue Show Answer

Q133) The balance in capital redemption reserve is available for - Show Answer

Q134) As per the Companies Act, 2013, preference shares which are issued by company engaged in infrastructure project can issue preference share which are redeemable after ____ Show Answer

Q135) A preference shares is one which enjoy a: Show Answer

Q136) Unless otherwise stated, a preference share is always deemed to be - Show Answer

Q137) As per the Companies Act, 2013 the companies cannot use the balance of Securities Premium for - Show Answer

Q138) Which of the following can be utilized in redemption of preference share capital account?
1. Profits available for dividend
2. Capital Reserve
3. Dividend Equalization Fund
4. Development Rebate Reserve
5. Profit Prior to Incorporation
Select the correct answer from the options given below -
Show Answer

Q139) Statement I:
The main purpose to create CRR is to keep the capital structure of the company variable.
Statement II:
Another purpose to create CRR is to protect the interest of creditors, since CRR cannot be utilized for payment of dividend.
Select the correct answer from the options given below -
Show Answer

Q140) To whom the bonus shares or rights shares can be issued? Show Answer

Q141) Preference shares are entitled to a - Show Answer

Q142) A preference shareholder can vote - Show Answer

Q143) Redeemable Preference shares can be redeemed out of _____ Show Answer

Q144) Which of the following is correct journal entry for the 'Amount due to preference shares on redemption'? Show Answer

Q145) A company used balance of ‘General Reserve’ and ‘P & L A/c’ for redemption of preference share capital amount. Which of the following is correct journal entry for this transaction? Show Answer

Q146) Which of the following statements is NOT TRUE with regard to redemption of Preference shares? Show Answer

Q147) When Redeemable Preference shares are due for redemption, the entry passed is Show Answer

Q148) Which of the following statements is FALSE? Show Answer

Q149) Which of the following cannot be used for the purpose of creation of capital redemption reserve account? Show Answer

Q150) According to section 52 of the Companies Act, 2013, the amount in the Securities Premium A/c cannot be used for the purpose of: Show Answer

Q151) Which of the following statements is TRUE? Show Answer

Q152) Which of the following statements is incorrect? Show Answer

Q153) Which of the following statements is correct? Show Answer

Q154) For which one or more of the following reasons could a balance in the share premium be applied?
(a) To issue bonus shares.
(b) For distribution to shareholders as dividend.
(c) To write down the value of assets, particularly when they are impaired.
(d) To write off expenses of and com¬mission on issuing the same shares
Select the correct answer from the options given below -
Show Answer

Q155) For which one or more of the following reasons does company law attempt to protect the balance in the securities Premium account by specifying the reasons for which alone it may be applied?
(a) It is part of the capital actually con¬tributed by the shareholders.
(b) It should be protected from erosion as part of the creditor’s buffer.
(c) It is not realized in cash.
(d) It is immoral to allow a company to make profit by trading on its own shares.
Select the correct answer from the options given below -
Show Answer

Q156) During the year a company used the balance it had in its securities premium account for all of the following purposes.
(a) Write off expenses of company for¬mation.
(b) Write off the cost of issuing bonus shares.
(c) Write off goodwill acquired when another business was bought as a going concern.
(d) Write off expenses of issuing shares.
Which one is not correct?
Show Answer

Q157) N Ltd. had 9,000 8% preference shares of Rs. 100 each, fully paid up. The company decided to redeem these preference shares at par by the issue of sufficient number of equity shares. How much equity shares are required to be issued if new equity shares are to be issued at Rs. 10 each? Show Answer

Q158) S Ltd. had 9,000 8% preference shares of Rs. 100 each, fully paid up. The company decided to redeem these preference shares at par by the issue of sufficient number of equity shares. How much equity shares are required to be issued if new equity shares are to be issued at Rs. 12 for a premium including Rs. 2 Show Answer

Q159) S Ltd. issued 2,000, 10% Preference shares of Rs. 100 each at par, which are redeemable at a premium of 10%. For the purpose of redemption, the company issued 1,500 Equity Shares of Rs. 100 each at a premium of 20 % per share. At the time of redemption of Preference Shares, the amount to be transferred by the company to the Capital Redemption Reserve Account = ? Show Answer

Q160) During the year 2005-2006, T Ltd. issued 20,000,12% Preference shares of Rs. 10 each at a premium of 5%, which are redeemable after 4 years at par. During the year 2010- 2011, as the company did not have sufficient cash resources to redeem the preference shares, it issued 10,000,14% debentures of Rs. 10 each at a premium of 10%. At the time of redemption of 12% preference shares, the amount to be transferred to capital redemption reserve = ? Show Answer

Q161) Preference shares amounting to Rs. 2,00,000 are redeemed at a premium of 5%, by issue of equity shares amounting to Rs. 1,00,000 at a premium of 10%. The amount to be transferred to capital redemption reserve = ? Show Answer

Q162) The balance sheet of A Ltd. has 20,000 9% preference shares of Rs. 10 each. The company redeemed preference shares at a premium of Rs. 2 per share. For redemption it realized investments at a value of Rs. 1,60,000 (Book value Rs. 2,00,000). At the time of redemption balance in profit & loss account was Rs. 1,60,000.
Issued at a premium of Rs. 40 per share, such a number of equity shares of Rs. 100 each for the purpose of redemption as to ensure that after the compliance with the requirements of the Companies Act, 2013, the credit balance in profit and loss account would be Rs. 25,000. No. of equity shares to be issued are ….. & balance transferred to capital redemption account …..
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Q163) A Ltd. had 3,000, 12% Redeemable Preference Shares of Rs. 100 each, fully paid up. The company issued25,000 equity shares of Rs. 10 each at par and 1,000 14% Debentures of Rs. 100 each. The amount to be transferred to Capital Redemption A/c will be Show Answer

Q164) Ajay Ltd. decided to redeem 10,000 Preference shares of Rs. 10 each at 10% premium. Balance in profit & loss account is Rs. 60,000 and in Securities Premium A/c is Rs. 10,000. You are required to calculate the minimum number of equity shares to be issued for the purpose of redemption if new equity shares are to be issued at 20% premium having face value of Rs. 10 each. Show Answer

Q165) Preference shares of Rs. 9,00,000 are redeemable by issuing 3,000 equity shares of Rs. 100 each at Rs. 140. The amount to be transferred to Capital Redemption Reserve - Show Answer

Q166) N Ltd. purchased fixed asset of Rs. 28,80,000. The consideration was paid by issue of 12% preference shares of Rs. 100 each at 20% premium. No. of preference to be issued - Show Answer

Q167) XYZ Ltd. has 1,000 Preference Shares (Rs. 100 each). Calls-in-Arrear on 100 preference shares is Rs. 2,000. Securities Premium Account, Reserve Fund & Profit & Loss Account has a balance of Rs. 12,000; Rs. 29,600 & Rs. 10,000.
It was decided to redeem preference shares at a premium of 20%, by issue of sufficient number of equity shares of Rs. 10 each subject leaving balance of Rs. 10,000 in reserve fund. Fixed assets costing Rs. 20,000 were sold for Rs. 18,000. All payments were made except to holders of 50 shares who cannot be traced. How much equity shares are to be issued to give effect to above transactions.
Show Answer

Q168) On 30.6.2019 X Ltd. has 6,750, 11% Preference shares of Rs. 100 each, fully paid-up. Under the terms of the issue, the preference shares are redeemable on 30.9.2019. To redeem preference shares it was decided to issue equity shares at Rs. 11 per share payable as follows:
(i) Rs. 2 on application.
(ii) Rs. 3.50 (including premium) on allot¬ment and the balance as call money on 1.1.2020.
Issue of equity shares was fully subscribed and allotment was made on 1.9.2019. Amount due on allotment were received by 25.9.2019. Company does not have any free reserve. How many equity shares should be issued by the X Ltd. to make the funds available for redemption of preference shares?
Show Answer

Q169) Preference shares of Rs. 50,000 redeemed at 5% by issue of equity shares of Rs. 30,000 at 10% premium. How much amount must be transferred to Capital Redemption Reserve Account as per provisions of the Companies Act, 2013? Show Answer

Q170) Roky Ltd. issued 30,000,12% preference shares of Rs. 10 each at premium of 5%, which are redeemable at par. It issued 20,000,14% Debentures of Rs. 10 each at premium of 10%. How much amount must be transferred to Capital Redemption Reserve Account as per provisions of the Companies Act, 2013? Show Answer

Q171) On September 4, 2019, the company issued 12,000 7% Debentures having a face value of Rs. 100 each at a discount of 2.5%. On September 12, the company issued 25,000, 8% Preference share of Rs. 100 each. On September 29, the company redeemed 30,000,6% Preference shares of Rs. 100 each at a premium of 5% together with one month dividend thereon. Bank balance as on August 31, 2019 was Rs. 29,25,000. Show Answer

Q172) Bard of directors of a company decided to issue minimum number of equity shares of Rs. 10 each at 20% discount to redeem 4,500 preference shares of Rs. 100 each. If the maximum amount of divisible profit is Rs. 2,50,558. Calculate the number of equity shares to be issued. How much shares will be issued if they are issued in multiple of 50. Show Answer

Q173) Provisions relating to buy back of securities are contained in _____ of the Companies Act, 2013. Show Answer

Q174) A company may purchase its own shares or other specified securities out of -
A. Free reserves
B. Securities premium account
C. Proceeds of issue of any shares
D. Proceeds of issue of specified securities.
Select the correct answer from the options given below.
Show Answer

Q175) Section 68 of the Companies Act, 2013 provides that no buy-back of any kind of shares or other specified securities shall be made out of the - Show Answer

Q176) Provisions of the Section 68 relating to buy back of shares are applicable to - Show Answer

Q177) No company shall purchase its own shares or other specified securities, unless buy-back is authorized by its - Show Answer

Q178) Which of the following is correct journal entry for the 'Amount due on buy back of shares’? Show Answer

Q179) For buy-back up to _____ of the company Board resolution is sufficient. Show Answer

Q180) As per Section 68 of the Companies Act, 2013, post buy back debt equity ratio should not exceed - Show Answer

Q181) For the purpose of calculating debt equity ratio which of the following debts are considered - Show Answer

Q182) Companies are allowed to buy back shares which are - Show Answer

Q183) The buy-back of the shares or other specified securities listed on any recognized stock exchange is in accordance with the - Show Answer

Q184) No offer of buy-back shall be made within a period of _____ reckoned from the date of the closure of the preceding offer of buy-back Show Answer

Q185) The notice of the meeting at which the special resolution is proposed to be passed relating to buy back of shares shall be accompanied by an explanatory statement stating - Show Answer

Q186) Which of the following method of buy back is allowed under the Companies Act, 2013?
(I) Buy back from the existing share¬holders or security holders on a proportionate basis.
(II) Buy back from the promoters of the company only on selective basis.
(III) Buy back from the open market.
Select the correct answer from the options given below.
Show Answer

Q187) Where a company proposes to buy-back its own shares or other specified securities, it shall, before making such buy-back, file with the ROC and the SEBI, a declaration of solvency signed by - Show Answer

Q188) A company used balance of 'General Reserve' and ‘P & L A/c’ for buy back of equity shares. Which of the following is correct journal entry for this transaction? Show Answer

Q189) Declaration of solvency in relation to buy back of shares has to be filed in - Show Answer

Q190) As per Section 68(6) of the Companies Act, 2013, declaration of solvency should be verified by an affidavit to the effect that the Board of Directors of the company has made a full inquiry into the affairs of the company as a result of which they have formed an opinion that it is capable of meeting its liabilities and will not be rendered insolvent within a period of _____ from the date of declaration adopted by the Board. Show Answer

Q191) Where a company buys back its own shares or other specified securities, it shall extinguish and physically destroy the shares or securities so brought back within _____ of the last date of completion of buy-back. Show Answer

Q192) Where a company completes a buy-back of its shares or other specified securities, it shall not make a further issue of the same kind of shares or other securities including allotment of new shares u/s 62(1)(a) [i.e. right issue] or other specified securities within a period of - Show Answer

Q193) Which of the following is allowed within next 6 months after the buyback of share? Show Answer

Q194) Which of the following is allowed within next 6 months after the buyback of share? Show Answer

Q195) Which of the following method of buy back is allowed under the Companies Act, 2013?
(I) Buy back by way of purchasing the securities issued to employees of the
company pursuant to a scheme of stock option.
(II) Buy back by way of purchasing the securities issued to employees of the company pursuant to a scheme of sweat equity.
Select the correct answer from the options given below.
Show Answer

Q196) Where a company buys back its shares or other specified securities, it shall maintain a register of the shares or securities so brought in Show Answer

Q197) A company shall, after the completion of the buy-back, file with the ROC and the SEBI a return relating to the buy-back Show Answer

Q198) Which of the following penalty is attracted if company makes default in provisions of Section 68 relating to buy back of shares? Show Answer

Q199) A company shall, after the completion of the buy-back, file with the ROC and the SEBI a return relating to the buy-back in Form No. SH-11 within _____ from the date of completion of buy-back. Show Answer

Q200) Which of the following penalty is attracted for officers of the company if there is default in provisions of Section 68 relating to buy back of shares? Show Answer

Q201) As per Section 7 0 of the Companies Act, 2013, the buy-back is not prohibited, if the various defaults mentioned in that section is remedied and a period of _____ has lapsed after such default ceased to subsist. Show Answer

Q202) Which of the following is objective of buy back of equity shares?
(1) To improve earnings per share (EPS)
(2) To increase the sales of the company
(3) To prevent unwelcome takeover bids.
(4) To improve liquidity ratio.
Select the correct answer from the options given below.
Show Answer

Q203) Which of the following statement is true? Show Answer

Q204) Which of the following method for buyback of shares is not allowed? Show Answer

Q205) Where a company purchases its own shares out of free reserves or securities premium account, a sum equal to the nominal value of the shares so purchased shall be transferred to the Show Answer

Q206) Which of the following reserve can be used for buy back of equity shares? Show Answer

Q207) A company cannot buy-back its shares from any person through negotiated deals or through spot transactions or through any - Show Answer

Q208) Which of the following reserve can be used for buy back of equity shares? Show Answer

Q209) Assertion (A):
The buy-back may be misused by the corporate entities at the cost of innocent investor.
Reason (R):
The promoters, before the buy-back may understate the earning by manipulating accounting policies in respect of depreci¬ation, valuation of inventories etc. which would lead to a fall in the quoted prices of shares and the promoter would buy then at low quotations.
Select the correct answer from the options given below.
Show Answer

Q210) Which of the following entry will be passed for payment of amount due on buy back if equity shares? Show Answer

Q211) Paid-up equity shares capital of ABC Ltd. is Rs. 50,00,000 having face value of Rs. 10 each fully paid-up. Other details:
General Reserve = Rs. 15,00,000
Capital Redemption Reserve = Rs. 4,00,000
Profit & Loss Account = Rs. 1,00,000
Statutory reserve = Rs. 6,40,000
Securities Premium = Rs. 1,00,000
The board of directors passed resolution in board meeting to buy back maximum number of shares as allowed by law. Maximum No. of shares that can be brought back = ?
Show Answer

Q212) N Ltd. had 90,000 equity shares of Rs. 100 each, fully paid up. The company decided to buy back 10% shares at par by the issue of sufficient number of preference shares. Company do not have any reserves. How much preference shares are required to be issued if new preference shares are to be issued at Rs. 10 each? Show Answer

Q213) S Ltd. decided to buy back 2,000 equity shares of Rs. 100 each at a premium of 10%. For the purpose of redemption, the company issued 15,000 10% Preference shares of Rs. 10 each at a premium of 20% per share. The company has sufficient balance in profit & loss account. At the time of buy back shares, the amount to be transferred by the company to the Capital Redemption Reserve Account = ? Show Answer

Q214) During the year 2018-2019, T Ltd. buy back 20,000 equity shares of Rs. 100 each at a premium of 5%. During the year 2018-2019, as the company did not have sufficient cash resources to buy back equity shares, it issued 1,00,000, 12% Preference shares of Rs. 10 each at a premium of 15%. The company has sufficient balance in general reserve. At the time of buy back equity shares, the amount to be transferred to capital redemption reserve = ? Show Answer

Q215) Equity shares amounting to Rs. 2,00,000 are brought back at a premium of 5%, by issue of preference shares amounting to Rs. 1,00,000 at a premium of 10%. The amount to be transferred to capital redemption reserve = ? Show Answer

Q216) ABC Ltd. has paid-up equity capital of 10,00,000 equity shares of Rs. 10 each fully paid-up. Position of reserves is as follows: General Reserve = Rs. 30,00,000
Profit & Loss Account — Rs. 2,00,000
Securities Premium = Rs. 2,00,000
Company decided to buy back 2,00,000 equity shares of Rs. 10 each at 25% premium. For this purpose, the company sold the entire investments at Rs. 12,00,000 (book value Rs. 10,00,000) and made a fresh issue of 10% preference shares of Rs. 100 each to the extent minimum after utilizing the securities premium account and half of general reserve. How much preference shares must be issued by the company so that provisions of the Companies Act, 2013 get complied?
Show Answer

Q217) X Ltd. proposes to buy back Rs. 6,00,000 equity capital at 50% premium by issuing 2,000 14% preference shares of Rs. 100 each at 20% premium.
It has balance in Securities Premium, General Reserve and P & L A/c of Rs. 3,50,000; Rs. 9,30,000 & Rs. 48,000 respectively. For this purpose, it sold all of its investments of Rs. 1,48,000 for Rs. 1,50,000. The company wants to keep balance of 6,00,000 in general reserve. What are the balances of (i) Securities Premium A/c and (ii) Capital Redemption Reserve A/c after giving effect to above transactions?
Show Answer

Q218) Board of directors of G Ltd. decided to buy back Rs. 4,50,000 equity share capital at a premium of 10%. Balance of General Reserve & Securities Premium are Rs. 1,00,000 & Rs. 5,000. It was decided to issue 12% redeemable preference shares of Rs. 10 each for the purpose of buy back of equity shares as minimum as possible. How much preference share are to be issued by the company to give effect to above transactions? Show Answer

Q219) The balance appearing in the books of a company at the end of year were:
CRR A/c = Rs. 50,000
Securities Premium = Rs. 5,000
Revaluation reserve = Rs. 20,000
Profit & Loss A/c (Dr.) = Rs. 10,000
Maximum available for bonus shares will be amount
Show Answer

Q220) Shiva Ltd. forfeited 4,500 equity shares of Rs 10 each which are issued at 40% pro-rata (basis) for non payment of allotment @ Rs 6 (including premium of Rs 2.50) and first and final call Rs 3 per share. If the excess money received on application is used for receiving the amount due as securities premium, what amount should be credited to 'shares forfeited account'? Show Answer

Q221) P Ltd. forfeited 5,000 equity shares of Rs 10 each for non-payment of first and final call of Rs 2.50 per share which were issued at a premium of Rs 3 per share receivable at allotment. Out of these, 3,200 shares are re-issued at Rs 8 per share as fully paid up. The amount transferred to Capital Reserve will be: Show Answer

Q222) C Ltd. invited applications for the issue of 20 Lakh equity shares of rs 10 each payable Rs 3 on application and rs 7 on allotment. Applications were received for 35 Lakh equity shares. Applications for 7 Lakh shares were rejected and pro-rata allotment was made to remaining applicants. Excess application money was adjusted on the sums due on allotment. Ravi could not pay allotment money on his 2500 allotted shares. The amount received on allotment will be: Show Answer

Q223) Rule 17 of the companies (share capital and debenture) Rule, 2014, is related to: Show Answer

Q224) For the companies whose financial statements comply with the accounting standards as prescribed in section 133 of the Companies Act, 2013, the premium payable on redemption of preference shares shall be provided out of: Show Answer

Q225) The Capital Redemption Reserve Account may be used by the company: Show Answer

Q226) A company offered 2,50,000 equity shares to public for subscription. 70% of public issue was underwritten by G. Her firm underwritten was for 40,000 shares. Public subscribed for 1,30,000 shares. What is the net liabilities of G if as per underwriting agreement no credit is given to underwriter G for her firm underwritten shares? Show Answer

Q227) The term 'calls in arrears' is shown in the company's balance sheet: Show Answer

Q228) At the time of forfeited of shares the share capital account will be: Show Answer

Q229) The loss/discount on re-issue of forfeited shares may be: Show Answer

Q230) When the forfeited shares were originally issued at premium, the maximum permissible discount on re-issue shall be: Show Answer

Q231) Z ltd. issued 5,000 equity shares of Rs 10 each at 10% premium which is payable on allotment. The company received application money @ Rs 3 per share and allotment money received on only 4,500 shares @ Rs 4 per share. The company forfeited 500 shares for non-payment of allotment money. At the time of forfeiture, the Equity Shares Capital A/c will be: Show Answer

Q232) If the Articles of Association are silent regarding interest on call-in-arrears, the minimum rate of interest which can be charged on calls-in-arrears is: Show Answer

Q233) Forfeited shares can be re-issued at ____ Show Answer

Q234) No issue of bonus shares shall be made by a company out of: Show Answer

Q235) There shall be a minimum vesting period of ____ in case of Employee Stock Option Scheme (ESOS). Show Answer

Q236) Where the right to obtain Shares or stock options expires unexercised, the balance standing to the credit of Employee Stock Option Outstanding A/c should be transferred to: Show Answer

Q237) Under the _____ employees are given an option to purchase shares on the spot at a discount price. Show Answer

Q238) Which of the following cannot be used for the purpose of creation of capital redemption reserve account? Show Answer

Q239) According to section 52 of the Companies Act, 2013, the amount in the securities Premium A/c cannot be used for the purpose of: Show Answer

Q240) Which of the following statements in correct? Show Answer

Q241) Capital redemption Reserve Account may be applied to issue____ Show Answer

Q242) Preference shares amounting to Rs 2,00,000 are redeemed at a premium of 5% by issue of equity shares amounting to Rs 1,00,000 at a premium of 10%. What is the amount to be transferred to capital redemption reserve? Show Answer

Q243) J Ltd. had 3,000, 12% Redeemable Preference Shares of Rs 100 each, fully paid up. The company issued 25,000 equity shares of Rs 10 each at par and 1,000 14%. Debentures of Rs 100 each. The amount to be transferred to Capital Redemption A/c will be ______. Show Answer

Q244) The notice relating to offer for right issue shall be dispatched through registered post or speed post or through electronic mode to all the existing shareholders at least ____ before the opening of the issue. Show Answer

Q245) If company makes bonus issue at 2:3, then it means: Show Answer

Q246) _____ are shares issued by a company free of cost to its existing shareholders. Show Answer

Q247) _____ refers to that part of the authorized capital which has actually been offered to the public for subscription. Show Answer

Q248) Premium on issue of shares must be credited to a separate account called______. Show Answer

Q249) Amount received as calls-in-advance is a ____ of the company. Show Answer

Q250) _____ may be said to be the compulsory termination of membership by way of penalty for non-payment of allotment and/or any call money. Show Answer

Q251) A company has a subscribed capital of 2,00,000 equity shares of rs 25 each, Rs 20 per share called up. The directors forfeited 200 equity held by a shareholder who failed to pay the first call made @Rs 10 per share. Later, the directors reissued these shares as Rs 20 per share paid up at Rs 15 per share. On reissue, amount to be transferred to capital reserve account is _____ . Show Answer

Q252) Section 68(4); Every buy-back shall be completed within a period of ___ from the date of passing of the special resolution, or as the case may be, the resolution passed by the Board. Show Answer

Q253) According to section 68(1) of the Companies Act 2013, a company cannot purchase its own shares or other specified securities (referred to as buy-back) out of: Show Answer

Q254) LMN Ltd. allotted 20,000 shares to the applicants of 28,000 shares on pro-rata basis. The amount payable on application is Rs 25 per share. Kanika applied for 700 shares, the number of shares allotted to Kanika will be: Show Answer

Q255) At the time of forfeiture of shares the share capital account is debited with: Show Answer

Q256) A Ltd. forfeited 1,000 shares of Rs 10 each fully called up for non-payment of first and final call of Rs 3 per share. 600 of these shares were reissued at Rs 9 per share, fully paid up. What is the amount to be transferred to Capital Reserve Account? Show Answer

Q257) Pro-rata allotment of shares is made when there is: Show Answer

Q258) ABC Ltd. Issued 10,000 equity shares of Rs 100 each at par payable as under:
On application Rs 30; on allotment Rs 20; on first and on final call Rs 50 per share. Applications were received for 30,000 shares. Applications for 5,000 shares were rejected and pro-rata allotment was made to the applicants for 25,000 shares. Excess application money is adjusted towards amount due on allotment and calls. How much money will be received in cash on first call? Show Answer

Q259) The company shall not issue sweat equity shares for more than ____ of the existing paid up equity share capital in a year or shares of the issue value of rupees ____ whichever is higher. Show Answer

Q260) In case of buy back of own shares, a company shall make a public announcement within two working days from the date of special resolution/Board of directors resolution in: Show Answer

Q261) ABC Ltd. issued 1,00,000 equity shares of Rs 100 each, payable as under:
On application Rs 30; on allotment Rs 30, on final call Rs 40
1,45,000 applications were received as under:
Applicants applied for 25,000 shares, allotted full.
Applicants applied for 1,00,000 shares, allotted 75,000 shares on pro-rata basis.
Remaining applications were rejected.
Amount received at the time of application is _____. Show Answer

Q262) ABC Ltd. issued 1,00,000 equity shares of Rs 100 each, payable as under:
On application Rs 30; on allotment Rs 30, on final call Rs 40
1,45,000 applications were received as under:
Applicants applied for 25,000 shares, allotted full.
Applicants applied for 1,00,000 shares, allotted 75,000 shares on pro-rata basis.
Remaining applications were rejected. How much excess money received on application: Show Answer

Q263) ABC Ltd. issued 1,00,000 equity shares of Rs 100 each, payable as under:
On application Rs 30; on allotment Rs 30, on final call Rs 40
1,45,000 applications were received as under:
Applicants applied for 25,000 shares, allotted full.
Applicants applied for 1,00,000 shares, allotted 75,000 shares on pro-rata basis.
Remaining applications were rejected. What is amount to be refunded ____. Show Answer

Q264) A company after the completion of the buy back under this sections, shall file with the Registrar a return in ____. Show Answer

Q265) As per ICAI Guidance Note on ESOP, share options outstanding account should be shown in Balance sheet of a company as follows: Show Answer

Q266) The nature of shares of a company is considered as a/an ____. Show Answer

Q267) What will be the rate of interest on calls-in-advance in the absence of any provision in the Articles of Association of a company? Show Answer

Q268) Bonus shares cannot be issued by a company out of ____. Show Answer

Q269) The maximum amount of discount on re-issue of forfeited shares shall be ____. Show Answer

Q270) X applied for 200 shares of Rs 10 each in ABC Ltd but he was allotted only 160 shares. After having paid Rs 1 on application he did not pay the allotment money of Rs 2 per share and first call money Rs 3 per share. His shares were forfeited. What amount will be credited to share allotment account at the time of entry for forfeiture? Show Answer

Q271) P ltd. has a total subscribed capital of Rs 10,00,000 in equity shares of Rs 10 each of which Rs 7.50 were called up. A final call of 2.50 was made and all amounts paid except the two calls of Rs 2.50 each in respect of 200 shares held by A. These shares were forfeited and re-issued at Rs 8.00 per share. What amount will be transferred to capital reserve account on re-issue of forfeited shares? Show Answer

Q272) As per section 68(2) of the companies act 2013, post buy-back debt-equity ratio should be ____ Show Answer

Q273) As per the provisions of the Companies Act 2013, it is required that if the company is not able to collect ____ of the offer amount, then it needs to compulsorily return the money to those who have subscribed to the shares. Show Answer

Q274) Every buy-back shall be completed within a period of ___ from the date of the resolution or special resolution, as the case may be, passed by the Board of Directors Show Answer

Q275) In case of buy-back of shares, passing of special resolution by a company is not required if: Show Answer

Q276) Ind AS 34 requires the following in the contents of an interim financial report in addition to what was the required under previous standard AS 25: Show Answer

Q277) Redemption of preference shares can not be done out of: Show Answer

Q278) Amount of share application should not be less than ____ % of face value. Show Answer

Q279) Amount of share forfeited after re-issue of shares should be transferred to Show Answer

Q280) If shares are issued at premium then, the amount of premium can be utilized Show Answer

Q281) Value of share is Rs 100 and only Rs 80 called up only and a shareholder did not paid the final call of Rs 30 and his share is forfeited. On forfeiture Share Capital A/c will be debited by: Show Answer

Q282) Any balance remaining in Share forfeited account after reissue of all forfeited shares will be transferred to: Show Answer

Q283) Time period between 2 calls should be Show Answer

Q284) " Securities Premium A/c" is shown in B/S on: Show Answer

Q285) Profit on re-issue of forfeited shares is transferred to: Show Answer

Q286) Maximum amount that can be collected as premium as a percentage of face value: Show Answer

Q287) The minimum amount that should be called by a company with application for its shares is the following percent of face value of shares: Show Answer

Q288) A company cannot issue: Show Answer

Q289) Which of the following is not a capital profit? Show Answer

Q290) Unless otherwise stated, a preference share is always deemed to be: Show Answer

Q291) Premium on issue of shares can be used for: Show Answer

Q292) The rate of interest paid on calls in advance as per Table F is: Show Answer

Q293) The document inviting offers from public to subscribe for the debentures or shares or deposits of a company is a: Show Answer

Q294) Where shares are issued to promoters for their services, the account that will be debited is: Show Answer

Q295) The maximum amount beyond which a company is not allowed to raise funds, by issue of shares, is its: Show Answer

Q296) Securities premium account should be shown in the: Show Answer

Q297) Which of the following should be deducted from the share capital to find out paid-up capital? Show Answer

Q298) Which of the following does not appear under the head 'share capital' of a balance sheet? Show Answer

Q299) Which of the following statements is true regarding calls-in-arrears? Show Answer

Q300) Which one of the following is known as Registered Capital of the company? Show Answer

Q301) The directors of B ltd made the final call of Rs 30 per share on January 15, 2004 including the last date of payment of call money to be January 31, 2004. Mr. C holding 7,500 shares paid the call money on March 15, 2004.
If the company adopts Table F of the Companies Act the amount of interest on calls - in - arrear to be paid by Mr. C is ? Show Answer

Q302) A company forfeited 2,000 shares of Rs 10 each (which were issued at par) held by Mr. John for non-payment of allotment money of Rs 4 per share. The called-up value per share was Rs 9. On forfeiture, the amount debited to share capital A/c is? Show Answer

Q303) G. Ltd acquired assets worth Rs 7,50,000 from H. Ltd. by issue of shares of Rs 100 at a premium of 25%. The number of shares to be issued by, G. Ltd to settle the purchase consideration is? Show Answer

Q304) IJK. Ltd issued 20,000 shares of Rs 10 each at a premium of 20% on May 01, 2004, payable as follows:
On application Rs 4.50(inclusive of premium),
On allotment Rs 2.50
On first and final call Rs 5.00
Mrs. M, to whom 1000 shares were allotted has paid Rs 5,000 on June 01, 2004. At the time of remitting the allotment money, she indicated that the excess money should be adjusted towards the call money. The directors of the company made the first and final call on October 31, 2004. The company has a policy of paying interest on calls-in-advance. The amount of interest paid to Mrs. M on call-in-advance is? Show Answer

Q305) Z Ltd. issued 10,000 shares of Rs 10 each. The called up value per share was Rs 8. The company forfeited 200 shares of Mr. A for non-payment of 1st call money of Rs 2 per share. He paid Rs 6 for application and allotment money. On forfeiture, the shares capital account will be Show Answer

Q306) When shares are forfeited, the Share capital Account is debited with ____ and the Share Forfeiture Account is credited with _____. Show Answer

Q307) The following statements apply to equity/preference shareholders. Which one of them applies only to preference shareholders? Show Answer

Q308) Interest on amount of calls in advance can not be more than: Show Answer

Q309) The amount of capital that is mentioned in 'capital clause' is known as: Show Answer

Q310) That portion of called up capital which is not received is known as: Show Answer

Q311) The minimum subscription as prescribed by SEBI against the entire issue is: Show Answer

Q312) The amount called over and above the nominal value of share should be credited to: Show Answer

Q313) The excess of the nominal value over the issue price represents: Show Answer

Q314) Pro-rata allotment is done in case of: Show Answer

Q315) Share application account is of the nature of a Show Answer

Q316) Balance of Share premium account can not be used for: Show Answer

Q317) The company charges interest on calls in arrear at rate of: Show Answer

Q318) What percentage of shares issued to the public must be subscribed so that the share can be allotted? Show Answer

Q319) The minimum share application is: Show Answer

Q320) Which account will be credited if the gain on forfeiture is more than the loss on reissue Show Answer

Q321) 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 share only. The balance in the calls in arrear amounted to Rs 62,500. Calculate the final call on share Show Answer

Q322) On the forfeiture of shares, the share capital will be debited by Show Answer

Q323) If the shares are issued at a premium and the amount of premium has been received, then what will be the treatment of the premium amount at the time of forfeiture Show Answer

Q324) As per Section 52, the balance standing in the securities premium account cannot be utilized for Show Answer

Q325) Voluntary return of shares for cancellation by the shareholders is called Show Answer

Q326) Balance in the share forfeiture account appears in the balance sheet under the head of Show Answer

Q327) The statement issued to the public for issue of shares is called as Show Answer

Q328) Right shares are issued to Show Answer

Q329) Share allotment account is Show Answer

Q330) If the shares are issued to the promoters, then which account will be debited Show Answer

Q331) A company forfeited 5,000 shares of Rs 10 each held by A for non payment of allotment money of Rs 4 per share. the called up value per share is Rs 8. Calculate the amount to be debited to the share capital A/c at the time of forfeiture of such shares Show Answer

Q332) A vender has been allotted shares of Rs 5,50,000 in consideration of net assets purchased worth Rs 5,00,000. then the balance of Rs 50,000 will be considered as Show Answer

Q333) ABC Ltd. acquire the assets worth Rs 10,00,000 from XYZ Ltd. by issuing shares of Rs 10 each at premium of Rs 10 each. Calculate the number of shares to be issued to settle the liability Show Answer

Q334) If a share of Rs 100 on which Rs 80 has been paid is forfeited, then calculate the minimum price at which it can be re-issued Show Answer

Q335) A company has issued 50,000 shares of Rs 10 each at 20% premium payable as follows application Rs 3, allotment Rs 5 (including premium) and first and final call of Rs 4 each. A holder of 2,500 shares failed to pay the first & final call and his shares were forfeited thereafter. Calculate the amount to be credited to the share forfeiture A/c. Show Answer

Q336) Which of the following will define, when appropriation of a certain number of shares is made to an applicant in response to his application? Show Answer

Q337) Which of the following statement is true? Show Answer

Q338) P Ltd. forfeited 150 shares of Rs 10 each, issued at a premium of Rs 2, for non-payment of the final call of Rs 3. Out of these, 100 shares were re-issued @ Rs 11 per share. How much amount would be transferred to capital reserve? Show Answer

Q339) If the number of shares offered to public for subscription is less than the number of applications received, it is termed as :- Show Answer

Q340) XY Limited issued 2,50,000 equity shares of Rs 10 each at a premium of Rs 1 each payable as Rs 2.5 on application, Rs 4 on allotment and balance on the first and final call. Applications were received for 5,00,000 equity shares but the company allotted to them only 2,50,000 shares. Excess money was refunded after adjustment for further calls. Last call on 500 shares were not received and shares were forfeited after due notice. this is the case of: Show Answer

Q341) Z Ltd forfeited 200 fully called up shares of Rs 10 each on which Rs 1,300 had been received; later on these shares were reissued as fully paid up @ Rs 9 per share. The amount to be transferred from share forfeited account to capital reserve account will be: Show Answer

Q342) Omega ltd. a listed company acquires assets worth Rs 7,50,000 from Alpha Limited and issue shares of Rs 10 each at a premium of 25%. The number of shares to be issued by Omega ltd. to settle the purchase consideration will be: Show Answer

Q343) E Ltd. had allotted 10,000 shares to the applications of 14,000 shares on pro-rata basis. The amount payable on application was Rs 2. F applied for 420 shares. The number of shares allotted and the amount carried forward for adjustment against allotment money due from F will be: Show Answer

Q344) A company forfeited 1,000 shares of Rs 10 each (which were issued at par) held by Saurabh for non-payment of allotment money of Rs 4 per share. The called-up value per share was Rs 8. On forfeiture, the amount debited to share capital account will be- Show Answer

Q345) The maximum amount beyond which a company is not allowed to raise fund by issue of its shares is called Show Answer

Q346) 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- Show Answer

Q347) X failed to pay final call on 24,000 shares rs 20 per share on 15.12.2018 and paid the same on 15.03.2019. What is the interest of calls in arrears. Show Answer

Q348) Company cannot issue shares more than Show Answer

Q349) Premium received on re-issue of forfeited share should be Show Answer

Q350) 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 9. Calculate the amount credited to Share Capital A/c at time of re-issued? Show Answer

Q351) 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 as fully paid up for Rs 8 per shares. Calculate the amount transferred to capital reserve Show Answer

Q352) Gas Ltd. issued 1,00,000 equity shares of rs 10 each payable as follows: Rs 3 on application, Rs 3 on allotment, Rs 2 on first call and Rs 2 on second and final call. The company received application for 1,50,000 shares. The allotment was made as under:
Applicants for 50,00 shares were allotted in full. Applicants for 80,000 shares were allotted 50,000 shares on pro-rata basis and applicants to 20,000 shares were rejected. The amount of excess application money available for adjustment against allotment is: Show Answer

Q353) Dabur Ltd forfeited 400 shares of Rs 10 each fully called up on which the holder ha paid only application money at Rs 4 per share. Out of these 250 shares were re-issued at Rs 12 per share fully paid up. Capital reserve will be credited by: Show Answer

Q354) A new company wants to issue share at premium. The maximum rate of premium will be? Show Answer

Q355) Forfeited shares account ( not yet re-issued ) shown under the heading ____. Show Answer

Q356) As per sec 52 of the companies Act 2013, the securities premium reserve can be utilized for the purpose of : Show Answer

Q357) Which of the following statement is not correct? Show Answer

Q358) XYZ limited issued 20,000 shares of Rs 10 each. It received applications for 24,000 shares. Shares were allotted to all shareholders proportionately. The application money was Rs 6 and allotment and call money was Rs 4 per share. Ram who was allotted 300 shares could not pay the allotment money. The money due to ram would be: Show Answer

Q359) Star Ltd issued 80,000 equity shares of Rs 10 each. The money was payable as Rs 3 on application, Rs 4 on allotment, Rs 2 on first call and Rs 1 on final call. The applications were received for 1,20,000 shares. Applicants of 20,000 shares were allotted in full. Applicants of 80,000 shares were allotted 60,000 shares on pro rata basis and applications for 20,000 shares were rejected. Amount to be refunded by the company is: Show Answer

Q360) Which of the following statement is not true: Show Answer

Q361) The amount paid in advance by a shareholder is called: Show Answer

Q362) Nominal capital is also known as _______. Show Answer

Q363) A company forfeited 100 equity shares of Rs 100 each issue at premium of 50% on which first call of Rs 30 per share was not received, final call of Rs 20 is yet to be made. these shares were, subsequently reissued @ Rs 70 per share @ Rs 80 paid up. the amount credited to capital reserve:. Show Answer

Q364) A company issued 5000 shares. Application were received for 6000 shares and company made pro-rata allotment. D a shareholder was allotted 600 shares. Find the applied no. of shares by him: Show Answer

Q365) A company issued Rs 9,00,000 shares. Offer came for Rs 8,50,000 shares. Face value is Rs 10 per share. Application Rs 2, allotment is Rs 4 balance in 2 equal calls. Amount transferred to share capital: Show Answer

Q366) If a company issued 10,000 the application is received for Rs 12,000 shares, company made pro-rata allotment for applicants of 6,000 and allotted them 5,000 shares. The Board of Directors rejected applications for 1000 shares rest applicants were allotted in full. Amount adjusted against allotment if application money is Rs 2 per share. Show Answer

Q367) A co. issues shares of Rs 100 each at a premium of Rs 2. The amount was payable as on application of Rs 3, on allotment Rs 4 (including premium) on 1st call of Rs 3 and on second and final call Rs 2. Mr. E who holds 100 shares failed to pay first call money. The co. has forfeited 100 shares after the first call on forfeiture, the amount debited to share capital account will be: Show Answer

Q368) A co. invited application for 20,000 shares and it received 60,000 application. The shares were allotted as per details given below. Category A - shares applied 40,000 shares allotted 10,000. Category B-shares applied 15,000 shares allotted 10,000. Category C- shares applied 5,000 shares allotted nil. Ram lies in category B and has been allotted 300 shares. The no. of shares applied by him would be: Show Answer

Q369) Which of the following statement is false about calls in advance? Show Answer

Q370) Which of the following statement is true? Show Answer

Q371) A ltd company forfeited 1000 equity shares of Rs 10 each issued at a premium of 10% for non-payment of first calls of Rs 2 and second call of Rs 3 share. For recording this forfeiture, calls-in-arrear A/c will be credited by Show Answer

Q372) As per Companies Act, 2013 the interest on calls-in-advance is paid for the period from the: Show Answer

Q373) The maximum amount beyond which a company is not allowed to raise funds by issue of its shares(on face value) is called: Show Answer

Q374) Biscuits Limited invited applications for 5000 shares of Rs 10/- each at a premium of Rs 2/- share. The amount was payable as Rs 5/- (including premium) on applicants, Rs 4/- on allotment and Rs 3/- on final Call Allotment was made on pro-rata bases to the application of 6000 shares. Mr..C to whom.60 shares were allotted, failed to pay allotment money and call money. Mr. D the holder of 100 share, failed to pay the call money. All these shares were forfeited after proper notice of forfeiture, the amount credited to share forfeiture account will be:

Show Answer

Q375) When there is an increase in the minimum capital with which the company is registered is to be altered. Show Answer

Q376) A shareholder does not pay his dues on allotment. For the amount due, there will be a ____ Show Answer

Q377) Oil Ltd. issued 1,00,000 equity shares of Rs 100 each. The money was payable as follows:
On application of Rs 20 on allotment Rs 30. On first call Rs 20 and second and final call Rs 30. Applications were received for 2,00,000 shares and pro-rata allotment was made to applicants of 1,50,000 shares. Excess money received on application was utilized towards allotment money.
The amount adjusted towards allotment is:
Show Answer

Q378) The discount allowed on re-issue of forfeited shares is debited to ____ Show Answer

Q379) According to sec-55 of Companies Act 2013 a company cannot redeem its preference shares out of: Show Answer

Q380) Redeemable preference shares of Rs 2,00,000 are redeemed at par for which purpose, fresh equity shares are issued for Rs 80,000 at 10% premium. the amount to be transferred to Capital Redemption Reserve will be: Show Answer

Q381) Which of the following accounts can be transferred to capital redemption reserved A/c? Show Answer

Q382) Which of the following cannot be used for the purpose of creation of Capital Redemption Reserve A/c? Show Answer

Q383) If preference shares are redeemed at premium such premium may be provided out of: Show Answer

Q384) S Ltd.issued 2000, 10% preference shares of Rs 100 each at par, which are redeemable at a premium of 10%. For the purpose of redemption, the company issued 1,500 equity shares of Rs 100 each at a premium of 10%. At the time of redemption of preference shares, the amount to be transferred by the company to CRR will be. Show Answer

Q385) T Ltd. issued 30,000 12% preference shares of Rs 10 each at a premium of 5% which are redeemable at par. The company, since it did not have sufficient cash resources to redeem the preference shares, issued 20,000, 14% debentures of Rs 10 each at a premium of 10%. The amount to be transferred to CRR will be:

Show Answer

Q386) Preference shares amounting to rs 2,50,000 are redeemed at a premium of 5% by Issue of shares amounting to Rs 1,50,000 at a premium of 10%.
The amount to be transferred to CRR will be: Show Answer

Q387) The balance appearing in the books of company at the end of the year were: CRR A/c - Rs 50,000, security Premium Rs 5,000 Revaluation Reserve - Rs 2,000; P/L A/c (Dr.) 10,000, maximum amount available for distribution as bonus shares will be Show Answer

Q388) Which of the following method cannot be used to redeem the preference shares? Show Answer

Q389) Which of the following Statement is false? Show Answer

Q390) On redemption or preference shares, money cannot be arranged (for payment to shareholders) from- Show Answer

Q391) Security premium cannot be used to Show Answer

Q392) Preference shares can be redeemed. Show Answer

Q393) The preference shares which carry the right of participating in the surplus left after paying the equity dividend are called: Show Answer

Q394) Redeemable preference shares must be redeemed within: Show Answer

Q395) Irredeemable preference shares: Show Answer

Q396) Rs 10,00,000 preference shares are to be redeemed by issue of 8,000 equity shares @ Rs 100 each for Rs 120 each. Then, the Capital redemption Reserve is to be credit by: Show Answer

Q397) Preference shares can be redeemed from: Show Answer

Q398) If the preference shares are redeemed at a premium, then the premium payable on redemption is provided out of: Show Answer

Q399) When the shares are redeemed out of profits then an amount equal to the nominal value of such shares is transferred to:
Show Answer

Q400) The maximum fine which can be charged on the company or its
members for non compliance of section 55 is:
Show Answer

Q401) Which of the following statement is false? Show Answer

Q402) A company cannot issue redeemable preference shares for a period exceeding: Show Answer

Q403) Which of the following accounts can not be transferred to capital redemption reserve account?
Show Answer

Q404) Which of the following cannot be utilized for redemption of preference share? Show Answer

Q405) Capital Redemption Reserve A/C prepared when Show Answer

Q406) During the year 2008-2009. Tin Ltd.issued 20,000, 12% preference
shares of Rs 10 each at a premium of 5%,which are redeemable after 4 years at par. During the year 2012-2013, as the company did not have sufficient cash resources to redeem the preference shares, it issued 10,000. 14% preference shares of Rs 10 each at a premium of 10%. At the time of redemption of 12% preference shares, the amount to be transferred to capital redemption reserve would be:
Show Answer

Q407) Premium on redemption of redeemable preference shares can be paid
out of
Show Answer

Q408) Underwriting commission payable on the shares taken up by the
promoters is
Show Answer

Q409) Preference shareholders are: Show Answer

Q410) The buy back of shares should the completed within period from the date of Passing the special resolution: Show Answer

Q411) Bonus shares are issued by the companies because? Show Answer

Q412) The share capital of a company consists of: Show Answer

Q413) Authorized capital clause is written in Show Answer

Q414) That portion of the 'uncalled capital' which can be called up only
winding up of the company called:
Show Answer

Q415) On an equity share of Rs 10 the minimum amount of share application under the law should be: Show Answer

Q416) Shares can be issued: Show Answer

Q417) Securities premium can not be applied: Show Answer

Q418) Premium received on issue of shares account is shown at: Show Answer

Q419) A company has issued 50,000 equity shares of Rs 10 each at a premium of 15% payable as Rs 3 on application, Rs 6.50 on allotment (Including Premium) and Rs 2 on call. Applications were received for 75,000 shares and pro-rata allotment was made. All the calls were made by the company and the amount was dully received except. Allotment and call money from a shareholder who applied for 1,200 shares. Calculate the calls in arrears
Show Answer

Q420) XYZ Ltd. has a huge amount of reserve in store and proposes to issue bonus shares to the shareholders. Company had not paid interest since post 3 years. Is the Company eligible to issue Bonus?
Show Answer

Q421) Calls paid in advance account is shown separately at the Show Answer

Q422) In case of shares have been issued at a premium and the amount of premium has been received then the time of forfeiture of such shares
Show Answer

Q423) After re-issuing the forfeited shares, the balance of forfeited account transferred to:




Show Answer

Q424) In practice share capital of a company means: Show Answer

Q425) Right shares are the shares that are offered to the:
Show Answer

Q426) Unpaid calls are shown in the balance sheet of a company: Show Answer

Q427) Pro-rata allotment of shares means allotment of shares: Show Answer

Q428) When shares are forfeited, called up amount on shares is debited to: Show Answer

Q429) Allotment of shares can be taken up only after: Show Answer

Q430) Shares can be forfeited: Show Answer

Q431) In absence of specific information of the company, security premium
reserves called along with:
Show Answer

Q432) Forfeited shares re-issued cannot be issued at a discount more than: Show Answer

Q433) Partly paid up shares can not be made fully paid up by bonus from: Show Answer

Q434) Preference shares of a company can not redeemed: Show Answer

Q435) Transfer in capital redemption reserve account is allowed from:
Show Answer

Q436) Those preference shares which do not enjoy the right to share additional profits come under the category of Show Answer

Q437) Equity shares cannot be issued for the purpose of : Show Answer

Q438) Which of the following is not shown under the heading 'Share Capital' in a Balance Sheet: Show Answer

Q439) 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 13,000 shares. Applications for 3,000 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? Excess application money is adjusted toward amount due calls
Show Answer

Q440) Y Ltd. forfeited 400 shares Rs 10 each, Rs 7 called up, for non-payment of first call of Rs 2 per share. Out of these, 300 shares were reissued for Rs 6 per share as Rs 7 paid up. What is the amount to be transferred to Capital Reserve Account?
Show Answer

Q441) 400 shares of Rs 10, on which Rs 8 has been called and Rs 5 has been paid, are forfeited. Out of these, 300 shares are re-issued for 9 as fully paid. What is the amount to be transferred to Capital Reserve Account?
Show Answer

Q442) R Ltd. forfeited 600 shares of Rs 100 each Rs 70 called up on which Mahesh has paid application and allotment money of Rs 50 per share. of these, 400 shares were re-issued to Naresh as fully paid-up for Rs 110 per share. What is the amount to be transferred to Capital Reserve ? Show Answer

Q443) Madhu Ltd. forfeited 800 shares of Rs 10 each issued at 10% premium to Shyam ( Rs 9 called up) on which he did not pay Rs 3 of allotment (including premium) and first call of Rs 2. Out of these, 600 shares were re-issued to Ram as fully paid up for Rs 9 per share. What is to amount to be transferred to Capital Reserve? Show Answer

Q444) B ltd. forfeited 300 shares of Rs 100 each, Rs 70 called up, for non­ payment of first call of Rs 20 per share. Out of these, 200 shares were re-issued for Rs 60 per share as Rs 70 paid up. What is the amount to be transferred to Capital Reserve Account?

Show Answer

Q445) 2000 shares of Rs 10, on which Rs 7 has been called and Rs 5 has been paid, are forfeited. Out of these, 1,500 shares are re-issued for Rs 9 as fully paid. What is the amount to be transferred to Capital Reserve Account?
Show Answer

Q446) Metacaf Ltd. Issued 50,000 shares of Rs 100 each payable Rs 20 on application (on 1st may 2012); Rs 30 on allotment (on 1st January 2013); Rs 20 first call (on 1st July 2013) and the balance on final call (on 1st February 2014). Shankar, a shareholder holding 5,000 shares did not pay the first call on the due date. The second call was made and Shankar paid the first call amount along with the second call. All sums due were received.
Total amount received on 1st Feb was:
Show Answer

Q447) Company engaged in the setting up of infrastructural projects may issue preference shares for a period not exceeding Show Answer

Q448) As per the Companies Act only preference shares, Which are redeemable within ___can be issued: Show Answer

Q449) A public Company need not offer further shares to existing shareholders, if ______ Show Answer

Q450) Preference shares are entitled to vote on every resolution placed before the company at any meeting if the dividend due on such shares are in arrears for a period of ________ or more.
Show Answer

Q451) Sweat equity shares shall not exceed ______ of the paid up equity Capital of the company at any time. Show Answer

Q452) Application on money to be received by company shalln't be less than ____. Show Answer

Q453) Section 2(88) provides the Definition of _____ Show Answer

Q454) The company may issue sweat Equity Shares of Max ____ % of paid up equity or Rs ____ whichever is higher. Show Answer

Q455) On an equity share of Rs 20, the company has called up Rs 18 but actually received Rs 16 only, the share capital would be credited by Show Answer

Q456) On an equity share of Rs 20, the company has called up Rs 18 but actually received Rs 16 only, the difference of Rs 2 will be debited to Show Answer

Q457) On an equity share of Rs 20, the company has called up Rs 18 but a shareholder paid only Rs 14 and his shares were forfeited on forfeiture of his shares the Share Forfeited A/c would be Show Answer

Q458) On a share of Rs 100 issued at a premium of Rs 10 the whole amount has been called up but in the case of shareholder only Rs 80 has been received. On forfeiture of the shares, share forfeiture A/c would be credited by Show Answer

Q459) If shares issued at premium are forfeited for non-payment of call money including premium amount then at the time of forfeiture of such shares
Show Answer

Q460) On re-issue of forfeited shares issued at discount Show Answer

Q461) Equity shareholders are the Show Answer

Q462) A Infrastructure project can Issue redeemable preference shares for a period exceeding 20 years Show Answer

Q463) Bonus shares can be issued if the - Show Answer

Q464) Transfer to Capital redemption reserve can be from ____ Show Answer

Q465) On 15th June, 1988 a company had 10,000 12% redeemable Preference Shares of Rs 10 each which were issued on 1st April, 1980 with a redemption period of 20 years. These shares will be redeemed Show Answer

Q466) Redeemable preference shares cannot be redeemed out of Show Answer

Q467) A company cannot issue Show Answer

Q468) Which of the following is odd one Show Answer

Q469) The re-emptive subscription rights to buy additional securities to existing shareholders is called Show Answer

Q470) If amount of a minimum subscription has not received within 30 days from prospectus date or any other period prescribed by SEBI, then amount received shall be returned within ______ Days from the closure
of issue.
Show Answer

Q471) Sweat equity shares allotted to employees shall be locked if for ______. Show Answer