Practice Test

Q1) The following list of accounts with their balances was taken from the general ledger of D ltd .as on March 31,2006:Discount on issue of debentures Rs.8,500 ; Cash Rs.73,500 ; Equity Share Capital Rs.100 each Rs.6,80,000 ; General Reserve Rs.2,31,500 ; Securities premium Rs.3,95,000 ;Dividends Payable Rs.22,000 ; Profit & loss appropriation account Rs.80,000 ; 10% debenture Rs.100 each Rs.1,00,000 . The Shareholders equity as on March 31,2006 is : Show Answer

Q2) Which of the following is false Show Answer

Q3) When shares are issued to promoters for the service offered by them ,the account that will be debited with the nominal value of shares is Show Answer

Q4) B ltd was registered with a share capital of Rs.1,00,00,000 divided into equity shares of Rs.10 each .It issued 9,00,000 equity shares to the general public at par payable as to Rs.3 on application,Rs.3 on allotment & balance in 2 equal calls. The public had subscribed for Rs.8,50,000 shares .Till.31st march ,2006,only first call had been made .All the shareholders had paid up except Mr. holder of 25,000 shares ,who did not pay the call money. How much is B's ltd authorized share capital Show Answer

Q5) B ltd was registered with a share capital of Rs.1,00,00,000 divided into equity shares of Rs.10 each .It issued 9,00,000 equity shares to the general public at par payable as to Rs.3 on application,Rs.3 on allotment & balance in 2 equal calls. The public had subscribed for Rs.8,50,000 shares .Till.31st march ,2006,only first call had been made .All the shareholders had paid up except Mr. holder of 25,000 shares ,who did not pay the call money. How much is B's ltd issued share capital Show Answer

Q6) B ltd was registered with a share capital of Rs.1,00,00,000 divided into equity shares of Rs.10 each .It issued 9,00,000 equity shares to the general public at par payable as to Rs.3 on application,Rs.3 on allotment & balance in 2 equal calls. The public had subscribed for Rs.8,50,000 shares .Till.31st march ,2006,only first call had been made .All the shareholders had paid up except Mr. holder of 25,000 shares ,who did not pay the call money. How much is B's ltd subscribed share capital Show Answer

Q7) B ltd was registered with a share capital of Rs.1,00,00,000 divided into equity shares of Rs.10 each .It issued 9,00,000 equity shares to the general public at par payable as to Rs.3 on application,Rs.3 on allotment & balance in 2 equal calls. The public had subscribed for Rs.8,50,000 shares .Till.31st march ,2006,only first call had been made .All the shareholders had paid up except Mr. holder of 25,000 shares ,who did not pay the call money. How much is B's ltd called up share capital Show Answer

Q8) B ltd was registered with a share capital of Rs.1,00,00,000 divided into equity shares of Rs.10 each .It issued 9,00,000 equity shares to the general public at par payable as to Rs.3 on application,Rs.3 on allotment & balance in 2 equal calls. The public had subscribed for Rs.8,50,000 shares .Till.31st march ,2006,only first call had been made .All the shareholders had paid up except Mr. holder of 25,000 shares ,who did not pay the call money. How much is B's ltd paid up share capital Show Answer

Q9) D Ltd issued 2,00,000 shares of Rs.100 each at a premium of Rs.20 per share payable as follows :On application Rs.20 , on allotment Rs.50(including premium) , on first call Rs.30 , On second & final call Rs.20 . Application were received for Rs.3,00,000 shares and pro rata allotment was made to applicants of 2,40,000 shares .Money excess received on application were employed on account of sum due on allotment as part of share capital.E ,to whom 4,000 shares were allotted ,failed to pay the allotment money & on his subsequent failure to pay the first call,his shares were forfeited & F ,the holder of 6,000 shares failed to pay the two calls and his shares were forfeited after the second call.Of the forfeited shares ,8,000 shares were reissued to G at a discount of 10% ,the whole of E's forfeited shares being reissued .amount received on application Show Answer

Q10) D Ltd. issued 2,00,000 shares of Rs.100 each at a premium of Rs.20 per share payable as follows :On application Rs.20 , on allotment Rs.50(including premium) , on first call Rs.30 , On second & final call Rs.20 . Application were received for 3,00,000 shares and pro rata allotment was made to applicants of 2,40,000 shares .Money excess received on application were employed on account of sum due on allotment as part of share capital.E ,to whom 4,000 shares were allotted ,failed to pay the allotment money & on his subsequent failure to pay the first call,his shares were forfeited & F ,the holder of 6,000 shares failed to pay the two calls and his shares were forfeited after the second call.Of the forfeited shares ,8,000 shares were reissued to G at a discount of 10% ,the whole of E's forfeited shares being reissued .Application money received against allotment Show Answer

Q11) D issued 2,00,000 shares of Rs.100 each at a premium of Rs.20 per share payable as follows :On application Rs.20 , on allotment Rs.50(including premium) , on first call Rs.30 , On second & final call Rs.20 . Application were received for 3,00,000 shares and pro rata allotment was made to applicants of 2,40,000 shares .Money excess received on application were employed on account of sum due on allotment as part of share capital.E ,to whom 4,000 shares were allotted ,failed to pay the allotment money & on his subsequent failure to pay the first call,his shares were forfeited & F ,the holder of 6,000 shares failed to pay the two calls and his shares were forfeited after the second call.Of the forfeited shares ,8,000 shares were reissued to G at a discount of 10% ,the whole of E's forfeited shares being reissued .Amount refunded to Applicants Show Answer

Q12) D issued 2,00,000 shares of Rs.100 each at a premium of Rs.20 per share payable as follows :On application Rs.20 , on allotment Rs.50(including premium) , on first call Rs.30 , On second & final call Rs.20 . Application were received for Rs.3,00,000 shares and pro rata allotment was made to applicants of 2,40,000 shares .Money excess received on application were employed on account of sum due on allotment as part of share capital.E ,to whom 4,000 shares were allotted ,failed to pay the allotment money & on his subsequent failure to pay the first call,his shares were forfeited & F ,the holder of 6,000 shares failed to pay the two calls and his shares were forfeited after the second call.Of the forfeited shares ,8,000 shares were reissued to G at a discount of 10% ,the whole of E's forfeited shares being reissued Total amount paid by E Show Answer

Q13) D issued 2,00,000 shares of Rs.100 each at a premium of Rs.20 per share payable as follows :On application Rs.20 , on allotment Rs.50(including premium) , on first call Rs.30 , On second & final call Rs.20 . Application were received for Rs.3,00,000 shares and pro rata allotment was made to applicants of 2,40,000 shares .Money excess received on application were employed on account of sum due on allotment as part of share capital.E ,to whom 4,000 shares were allotted ,failed to pay the allotment money & on his subsequent failure to pay the first call,his shares were forfeited & F ,the holder of 6,000 shares failed to pay the two calls and his shares were forfeited after the second call.Of the forfeited shares ,8,000 shares were reissued to G at a discount of 10% ,the whole of E's forfeited shares being reissued Total amount paid by F Show Answer

Q14) D issued 2,00,000 shares of Rs.100 each at a premium of Rs.20 per share payable as follows :On application Rs.20 , on allotment Rs.50(including premium) , on first call Rs.30 , On second & final call Rs.20 . Application were received for Rs.3,00,000 shares and pro rata allotment was made to applicants of 2,40,000 shares .Money excess received on application were employed on account of sum due on allotment as part of share capital.E ,to whom 4,000 shares were allotted ,failed to pay the allotment money & on his subsequent failure to pay the first call,his shares were forfeited & F ,the holder of 6,000 shares failed to pay the two calls and his shares were forfeited after the second call.Of the forfeited shares ,8,000 shares were reissued to G at a discount of 10% ,the whole of E's forfeited shares being reissued Total amount paid by G Show Answer

Q15) D issued 2,00,000 shares of Rs.100 each at a premium of Rs.20 per share payable as follows :On application Rs.20 , on allotment Rs.50(including premium) , on first call Rs.30 , On second & final call Rs.20 . Application were received for Rs.3,00,000 shares and pro rata allotment was made to applicants of 2,40,000 shares .Money excess received on application were employed on account of sum due on allotment as part of share capital.E ,to whom 4,000 shares were allotted ,failed to pay the allotment money & on his subsequent failure to pay the first call,his shares were forfeited & F ,the holder of 6,000 shares failed to pay the two calls and his shares were forfeited after the second call.Of the forfeited shares ,8,000 shares were reissued to G at a discount of 10% ,the whole of E's forfeited shares being reissued . Amount transferred to share forfeiture account at the time of forfeiting E's share Show Answer

Q16) D issued 2,00,000 shares of Rs.100 each at a premium of Rs.20 per share payable as follows :On application Rs.20 , on allotment Rs.50(including premium) , on first call Rs.30 , On second & final call Rs.20 . Application were received for Rs.3,00,000 shares and pro rata allotment was made to applicants of 2,40,000 shares .Money excess received on application were employed on account of sum due on allotment as part of share capital.E ,to whom 4,000 shares were allotted ,failed to pay the allotment money & on his subsequent failure to pay the first call,his shares were forfeited & F ,the holder of 6,000 shares failed to pay the two calls and his shares were forfeited after the second call.Of the forfeited shares ,8,000 shares were reissued to G at a discount of 10% ,the whole of E's forfeited shares being reissued . Amount transferred to share forfeiture account at the time of forfeiting F's share Show Answer

Q17) D issued 2,00,000 shares of Rs.100 each at a premium of Rs.20 per share payable as follows :On application Rs.20 , on allotment Rs.50(including premium) , on first call Rs.30 , On second & final call Rs.20 . Application were received for Rs.3,00,000 shares and pro rata allotment was made to applicants of 2,40,000 shares .Money excess received on application were employed on account of sum due on allotment as part of share capital.E ,to whom 4,000 shares were allotted ,failed to pay the allotment money & on his subsequent failure to pay the first call,his shares were forfeited & F ,the holder of 6,000 shares failed to pay the two calls and his shares were forfeited after the second call.Of the forfeited shares ,8,000 shares were reissued to G at a discount of 10% ,the whole of E's forfeited shares being reissued .Net balance in share capital account Show Answer

Q18) D issued 2,00,000 shares of Rs.100 each at a premium of Rs.20 per share payable as follows :On application Rs.20 , on allotment Rs.50(including premium) , on first call Rs.30 , On second & final call Rs.20 . Application were received for Rs.3,00,000 shares and pro rata allotment was made to applicants of 2,40,000 shares .Money excess received on application were employed on account of sum due on allotment as part of share capital.E ,to whom 4,000 shares were allotted ,failed to pay the allotment money & on his subsequent failure to pay the first call,his shares were forfeited & F ,the holder of 6,000 shares failed to pay the two calls and his shares were forfeited after the second call.Of the forfeited shares ,8,000 shares were reissued to G at a discount of 10% ,the whole of E's forfeited shares being reissued .Net balance in securities premium account Show Answer

Q19) D issued 2,00,000 shares of Rs.100 each at a premium of Rs.20 per share payable as follows :On application Rs.20 , on allotment Rs.50(including premium) , on first call Rs.30 , On second & final call Rs.20 . Application were received for Rs.3,00,000 shares and pro rata allotment was made to applicants of 2,40,000 shares .Money excess received on application were employed on account of sum due on allotment as part of share capital.E ,to whom 4,000 shares were allotted ,failed to pay the allotment money & on his subsequent failure to pay the first call,his shares were forfeited & F ,the holder of 6,000 shares failed to pay the two calls and his shares were forfeited after the second call.Of the forfeited shares ,8,000 shares were reissued to G at a discount of 10% ,the whole of E's forfeited shares being reissued .Net balance in share forfeiture account Show Answer

Q20) D issued 2,00,000 shares of Rs.100 each at a premium of Rs.20 per share payable as follows :On application Rs.20 , on allotment Rs.50(including premium) , on first call Rs.30 , On second & final call Rs.20 . Application were received for Rs.3,00,000 shares and pro rata allotment was made to applicants of 2,40,000 shares .Money excess received on application were employed on account of sum due on allotment as part of share capital.E ,to whom 4,000 shares were allotted ,failed to pay the allotment money & on his subsequent failure to pay the first call,his shares were forfeited & F ,the holder of 6,000 shares failed to pay the two calls and his shares were forfeited after the second call.Of the forfeited shares ,8,000 shares were reissued to G at a discount of 10% ,the whole of E's forfeited shares being reissued .Net balance in capital reserve account Show Answer

Q21) D issued 2,00,000 shares of Rs.100 each at a premium of Rs.20 per share payable as follows :On application Rs.20 , on allotment Rs.50(including premium) , on first call Rs.30 , On second & final call Rs.20 . Application were received for Rs.3,00,000 shares and pro rata allotment was made to applicants of 2,40,000 shares .Money excess received on application were employed on account of sum due on allotment as part of share capital.E ,to whom 4,000 shares were allotted ,failed to pay the allotment money & on his subsequent failure to pay the first call,his shares were forfeited & F ,the holder of 6,000 shares failed to pay the two calls and his shares were forfeited after the second call.Of the forfeited shares ,8,000 shares were reissued to G at a discount of 10% ,the whole of E's forfeited shares being reissued .Net balance in bank account Show Answer

Q22) D issued 2,00,000 shares of Rs.100 each at a premium of Rs.20 per share payable as follows :On application Rs.20 , on allotment Rs.50(including premium) , on first call Rs.30 , On second & final call Rs.20 . Application were received for Rs.3,00,000 shares and pro rata allotment was made to applicants of 2,40,000 shares .Money excess received on application were employed on account of sum due on allotment as part of share capital.E ,to whom 4,000 shares were allotted ,failed to pay the allotment money & on his subsequent failure to pay the first call,his shares were forfeited & F ,the holder of 6,000 shares failed to pay the two calls and his shares were forfeited after the second call.Of the forfeited shares ,8,000 shares were reissued to G at a discount of 10% ,the whole of E's forfeited shares being reissued Balance Sheet total Show Answer

Q23) When share are forfeited , the shares capital account is debited with ___& the share forfeited account is credited with____ Show Answer

Q24) B ltd issued 80,000 equity shares of Rs.10.each,payable as under : On application Rs.3, on allotment Rs.4, on first call Rs 2 , On final call Rs.1. :The application received for Rs.1,20,000 shares were dealt with as under : Application of 40,000 shares were allotted in full ; 60,000 shares pro-rata . Application of 20,000 shares were rejected . Amount received on application is Show Answer

Q25) B ltd issued 80,000 equity shares of Rs.10.each,payable as under : On application Rs.3, on allotment Rs.4, on first call Rs 2 , On final call Rs.1. :The application received for Rs.1,20,000 shares were dealt with as under : Application of 40,000 shares were allotted in full ; 60,000 shares pro-rata . Application of 20,000 shares were rejected . total excess money received as compared to the number of shares allotted = ? Show Answer

Q26) B ltd issued 80,000 equity shares of Rs.10.each,payable as under : On application Rs.3, on allotment Rs.4, on first call Rs 2 , On final call Rs.1. :The application received for Rs.1,20,000 shares were dealt with as under : Application of 40,000 shares were allotted in full ; 60,000 shares pro-rata . Application of 20,000 shares were rejected .Amount to be refunded = ? Show Answer

Q27) B ltd issued 80,000 equity shares of Rs.10.each,payable as under : On application Rs.3, on allotment Rs.4, on first call Rs 2 , On final call Rs.1. :The application received for Rs.1,20,000 shares were dealt with as under : Application of 40,000 shares were allotted in full ; 60,000 shares pro-rata . Application of 20,000 shares were rejected .Amount of excess application money available for adjustment against allotment money =? Show Answer

Q28) B ltd issued 80,000 equity shares of Rs.10.each,payable as under : On application Rs.3, on allotment Rs.4, on first call Rs 2 , On final call Rs.1. :The application received for Rs.1,20,000 shares were dealt with as under : Application of 40,000 shares were allotted in full ; 60,000 shares pro-rata . Application of 20,000 shares were rejected .Amount of excess application money available for adjustment against call money =? Show Answer

Q29) Which type of the following shares have the right to receive dividends unpaid in prior years, whenever earnings become adequate? Show Answer

Q30) Which of the following is false ? Show Answer

Q31) T ltd proposed to issue 6,000 equity shares of Rs.100 each at a premium of 40 % .the minimum amount of application money to be collected per share as per the Companies Act, 2013 Show Answer

Q32) Dividend are usually paid as a percentage of ___ Show Answer

Q33) E ltd allotted 10,000 shares to the applicant of 14,000 shares on pro-rata basis .The amount payable on the application is Rs.2. . F applied for 420 shares .the no.of shares allotted & the amount c/f for adjustment against allotment money due from F=? Show Answer

Q34) A company forfeited 2,000 shares of Rs.10 each (which were issued at par) held by Mr. J 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 =? Show Answer

Q35) The share premium account should be shown under Show Answer

Q36) O ltd .issued 10,000 equity shares of Rs.10 each at a premium of 20 % payable Rs.4 on application (including premium), on allotment Rs.5, on balance in 2 equal calls .The company received application for 15,000 shares & pro rata allotment was made to applicants. E ,to whom 3,000 shares were allotted ,failed to pay the allotment money & all his shares were forfeited after the call was made. The forfeited shares were reissued to Q at par .Assuming that no other bank transaction took place ,the bank balance of the company after effecting the above transaction =? Show Answer

Q37) On the issue of ,the application money should not be less than Show Answer

Q38) 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 no.of shares to be issued by G ltd to settle the purchase consideration =? Show Answer

Q39) B ltd a listed company, proposed to issue 1,00,000 equity shares of Rs.10 each at par by way of private placement .The maximum amount of brokerage that can be paid by company=? Show Answer

Q40) Unclaimed dividend should be classified in the balance sheet as a Show Answer

Q41) The interest on calls-in-advance is paid for the period from the Show Answer

Q42) As per schedule III of the Companies Act, 2013, under which of the following heads is 'premium on issue of preference shares' shown in the balance sheet of a company ? Show Answer

Q43) The excess price received over the par value of shares, should be credited to Show Answer

Q44) Consider the following data pertaining to M/s. W Ltd. as on march 31,2006 . Share capital :- Issued ,subscribed called -up (20,000 shares of Rs.100 each) Rs.20,00,000. Calls in arrears Rs.10,000 ,Profit & loss account (Cr) as on April 01,2005 Rs.67,000 , profit for the year Rs.1,90,610 . The company wants to create a Debenture Redemption Reserve & to transfer Rs.50,000 every year out of the profits to redeem the debentures. The company declared 10% dividend .'The amount of Dividend declared =? Show Answer

Q45) Consider the following data pertaining to M/s. W Ltd. as on march 31,2006 . Share capital :- Issued ,subscribed called -up (20,000 shares of Rs.100 each) Rs.20,00,000. Calls in arrears Rs.10,000 ,Profit & loss account (Cr) as on April 01,2005 Rs.67,000 , profit for the year Rs.1,90,610 . The company wants to create a Debenture Redemption Reserve & to transfer Rs.50,000 every year out of the profits to redeem the debentures. The company declared 10% dividend .The balance of profit & loss appropriation account transferred to B/S after effecting the transaction =? Show Answer

Q46) The following information retains to X ltd .i.Equity share capital called up Rs.5,00,000 ,ii Calls -in -arrears Rs.40,000 , iii Calls in advance Rs.25,000, iv Proposed divided 15% .The amount of dividend payable =? Show Answer

Q47) Z ltd .issued 10,000 equity 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 & allotment money .On forfeiture ,the share capital account will be Show Answer

Q48) Which of the following is false ? Show Answer

Q49) A company invited application for Rs.25,000 equity shares of Rs.10 each & received 30,000 applications along with the application money of Rs.4.per share .Which of the following alternative can be followed ? I. Refund the excess application , II. Make pro rata allotment to all the applicant ,and refund the excess application money.III.Not to allot any shares to some applicants ,full allotment to some of the applicant & pro rata allotment to the rest of the applicant , IV . Not to allot any shares to some applicants , & make pro rata allotment to other applicant.V.Make pro rata allotment to all the applicant & adjust the excess application money received towards call money Show Answer

Q50) The document inviting offers from public to subscribe for the debentures or shares or deposit of a body corporate is a Show Answer

Q51) As per schedule III of the Companies Act, 2013, forfeited shares account will be Show Answer

Q52) The authorized capital of M ltd.consists of both cumulative preference shares & equity shares. Each 5% cumulative preference shares has a par value Rs.100.Each equity share has a par value Rs.10.During the year April 01,2004 to March 31,2005, the cumulative preference share capital balance was Rs.2,00,000 & equity share capital balance was Rs.5,00,000.If dividend declaration totaled Rs.8,000 & Rs.15,000 in the year 2004-05 & 2005-06 respectively ,the dividend allocated to the equity share holders in the year Rs.2005-06 =? Show Answer

Q53) Which of the following is true ? Show Answer

Q54) Capital reserve are created out of Show Answer

Q55) As per The companies Act,only preference shares ,which are redeemable within __can be issued Show Answer

Q56) Which of the following is false ? Show Answer

Q57) The subscribed shares capital of S ltd is .Rs.80,00,000 of Rs.100 each .There were no calls in arrears till the final call was made .The final call made was paid on 77,500 shares .The calls in arrears amounted to Rs.62,500.the final call on shares =? Show Answer

Q58) Dividend are usually paid on Show Answer

Q59) The maximum amount beyond which a company's not allowed to raise funds ,by issue of shares is its' Show Answer

Q60) Which of the following should be deducted from the share capital to find out paid -up capital Show Answer

Q61) If a shareholder does not pay his dues on allotment ,for the amount due ,there will be a Show Answer

Q62) The discount allowed on re-issue of forfeited shares is debited to Show Answer

Q63) Maximum amount that can be collected as premium as a % of the face value Show Answer

Q64) Consider the following data pertaining to the issue of shares of a company .The company issued shares of Rs.10 each at a premium of Rs.2 payable as ; On application Rs.3, on allotment Rs.4(including premium), on first call Rs 3 , On second call Rs.2. D the holder of 100 shares ,failed to pay the first call money.The company has forfeited the 100 shares after the first call.On forfeiture ,the amount debited to share capital account Show Answer

Q65) D ltd issued 10,000 equity shares of Rs.10. at a premium of Rs.20% .The share amount was payable as follows: On application Rs.2, on allotment Rs.5,( including premium) , on first call Rs.3 on second & final call Rs.2.Application were received for Rs.14,000 shares & Allotment was made on pro rata basis to applicants .L ,to whom ,300 shares were allotted ,failed to pay the first call and final call money .All his shares were forfeited after proper notice.Out of the forfeiture shares 200 shares were reissued @ Rs.9 per share.The amount transferred to capital reserve =? & the balance in share forfeiture account respectively, are Show Answer

Q66) D ltd issued 10,000 equity shares of Rs.10. at a premium of Rs.20% .The share amount was payable as follows: On application Rs.2, on allotment Rs.5,( including premium) , on first call Rs.3 on second & final call Rs.2.Application were received for Rs.14,000 shares & Allotment was made on pro rata basis to applicants .L ,to whom ,300 shares were allotted ,failed to pay the first call and final call money .All his shares were forfeited after proper notice.Out of the forfeiture shares 200 shares were reissued @ Rs.9 per share. The balance in share forfeiture account respectively, are Show Answer

Q67) The following statement apply to equity /preference shareholders .Which one of them applies only to preference shareholders Show Answer

Q68) The Securities Premium amount may be utilized by a company for Show Answer

Q69) MATCH THE PAIRS :- The amount of capital ,to describe the shares offered to public for subscription is Show Answer

Q70) The primary means of communicating important accounting information to the user is Show Answer

Q71) The equity shareholders are entitled to Show Answer

Q72) The value that is placed on the share at the time of its original issue ,is called Show Answer

Q73) A company is an association registered under Show Answer

Q74) A company is a person created by Show Answer

Q75) A company has a separate legal entity from Show Answer

Q76) A company has perpetual succession which means Show Answer

Q77) common seal means the official signature of Show Answer

Q78) a member can not be held liable for the acts of the company even if he holds virtually the entire share capital .this is related to Show Answer

Q79) an authorised capital refers to Show Answer

Q80) under the capital clause of the memorandum of association of the companies ,it is must to state Show Answer

Q81) issued capital refers to Show Answer

Q82) issued capital includes Show Answer

Q83) subscribed capital refers to Show Answer

Q84) uncalled capital refers to Show Answer

Q85) reserve capital refers to Show Answer

Q86) X ltd .was formed with a capital of Rs.1,00,000 divided into shares of Rs.10 each .out of these 2,000 shares were issued to the vendor as fully paid as purchased consideration.6,500 shares was offered to the public & of these 6,000 shares were applied , for and allotted the directors called Rs.6 per share & received the entire amount except a call of Rs.2 per share on 50 shares .the amount of issued capital is Show Answer

Q87) X ltd .was formed with a capital of Rs.10,00,000 divided into shares of Rs.10 each .it offered 90% shares called up 40% on application & 20% on allotment .The subscribers paid Rs.3,40,000 on application & Rs.1,69,000 on allotment .the subscribed capital is Show Answer

Q88) which capital is to be stated in the memorandum of association Show Answer

Q89) which is not to be disclosed in the balance sheet of a company Show Answer

Q90) which is not correct about the shares of a company Show Answer

Q91) equity shares can be used Show Answer

Q92) A preference shares is one which carries Show Answer

Q93) cumulative preference shares is one on which Show Answer

Q94) participating preference shares is one which carries Show Answer

Q95) convertible preference shares is one which carries Show Answer

Q96) unless otherwise stated ,the preference share are deemed to be Show Answer

Q97) prospectus of a company is Show Answer

Q98) an application of shares is Show Answer

Q99) As per section of the companies Act, 2013, the amount payable on application on each share must be Show Answer

Q100) as per SEBI Guidelines ,the amount payable on application on each share must be at least Show Answer

Q101) the issue price of a share can be demanded Show Answer

Q102) securities premium can be demanded Show Answer

Q103) the balance of securities premium on account can be utilized Show Answer

Q104) a company can issue shares at premium Show Answer

Q105) if article are silent regarding interest on calls-in-arrears ,the minimum rate of interest which can be charged on calls -in -arrears is Show Answer

Q106) if article are silent regarding interest on calls-in-advance ,the minimum rate of interest which can be charged on calls -in -advance is Show Answer

Q107) X who applied for 100 shares were allotted 80 shares .the amount of demanded was Rs.2 on application ,Rs.2 on allotment , Rs.2 as first call & Rs.3 on second call .He did not pay anything after application .the amount of calls-in- arrears is Show Answer

Q108) if some shares are issued to a vendor who supplied a fixed asset,these shares are Show Answer

Q109) if some shares are forfeited ,share capital account is debited with Show Answer

Q110) if some shares are forfeited , forfeited share account is Show Answer

Q111) the securities premium account should be shown under the head Show Answer

Q112) on issue of share ,the application money must not be less than Show Answer

Q113) Which of the following is not true ? Show Answer

Q114) Which of the following is true ? Show Answer

Q115) Which of the following statement is true regarding calls in arrears Show Answer

Q116) Which of the following does not appear under the head 'share capital ' of a balance sheet ? Show Answer

Q117) which of the following statement is true with regards to issue of shares by a joint stock company Show Answer

Q118) Cas ltd. was registered with a share capital of Rs.2,00,00,000 divided into equity shares of Rs.10 each .It issued 9,00,000 equity shares to the general public at par payable as to Rs.3 on application,Rs.3 on allotment & balance in 2 equal calls. The public had subscribed for Rs.17,00,000 shares .Till.31st march ,2007,only first call had been made .All the shareholders had paid up except Mr.C holder of 50,000 shares ,who did not pay the call money. How much is authorized share capital Show Answer

Q119) Cas ltd. was registered with a share capital of Rs.2,00,00,000 divided into equity shares of Rs.10 each .It issued 9,00,000 equity shares to the general public at par payable as to Rs.3 on application,Rs.3 on allotment & balance in 2 equal calls. The public had subscribed for Rs.17,00,000 shares .Till.31st march ,2007,only first call had been made .All the shareholders had paid up except Mr. holder of 50,000 shares ,who did not pay the call money. How much is issued capital Show Answer

Q120) Cas ltd. was registered with a share capital of Rs.2,00,00,000 divided into equity shares of Rs.10 each .It issued 9,00,000 equity shares to the general public at par payable as to Rs.3 on application,Rs.3 on allotment & balance in 2 equal calls. The public had subscribed for Rs.17,00,000 shares .Till.31st march ,2007,only first call had been made .All the shareholders had paid up except Mr. holder of 50,000 shares ,who did not pay the call money. How much is subscribed share capital Show Answer

Q121) Cas ltd. was registered with a share capital of Rs.2,00,00,000 divided into equity shares of Rs.10 each .It issued 9,00,000 equity shares to the general public at par payable as to Rs.3 on application,Rs.3 on allotment & balance in 2 equal calls. The public had subscribed for Rs.17,00,000 shares .Till.31st march ,2007,only first call had been made .All the shareholders had paid up except Mr. holder of 50,000 shares ,who did not pay the call money. How much is called up share capital Show Answer

Q122) Cas ltd. was registered with a share capital of Rs.2,00,00,000 divided into equity shares of Rs.10 each .It issued 9,00,000 equity shares to the general public at par payable as to Rs.3 on application,Rs.3 on allotment & balance in 2 equal calls. The public had subscribed for Rs.17,00,000 shares .Till.31st march ,2007,only first call had been made .All the shareholders had paid up except Mr. holder of 50,000 shares ,who did not pay the call money. How much is paid up share capital Show Answer

Q123) X ltd proposed to issue 5,000 equity shares of Rs.100 each at a premium of 20% .the minimum amount of application money to be collected per share Show Answer

Q124) X ltd , a listed company ,proposed to issue 2,00,000 equity shares of Rs.10 each at par by way of private placement . The maximum amount of brokerage that can be paid by the company Show Answer

Q125) X ltd allotted 20,000 shares to the applicant of 28,000 shares on pro-rata basis .The amount payable on the application is Rs.2. . F applied for 840 shares .the no.of shares allotted & the amount c/f for adjustment against allotment money due from F=? Show Answer

Q126) The subscribed shares capital of S ltd is .Rs.1,60,00,000 of Rs.100 each .There were no calls in arrears till the final call was made .The final call made was paid on 1,55,000 shares .The calls in arrears amounted to Rs.1,25,000. the final call on shares =? Show Answer

Q127) Cas ltd issued 40,000 shares of Rs.10 each at a premium of Rs.20 % on may 01,2006 payable as follows :On application Rs.4.5(including premium) , on allotment Rs.2.50, , On first & final call Rs.5 .E ,to whom 2,000 shares were allotted ,had paid Rs.10,000 on 1.06.2006 .At the time of remitting the allotment money ,she indicated that the excess money should be adjusted towards the call money .the director of the company made the first & final call on oct.31,2006 .the company has a policy of paying interest on calls -in advance,the amount of interest paid to Mr.. x on calls -in-advance =? Show Answer

Q128) The authorized capital of M ltd.consists of both cumulative preference shares & equity shares. Each 5% cumulative preference shares has a par value Rs.100.Each equity share has a par value Rs.10.During the year April 01,2006 to March 31,2007, the cumulative preference share capital balance was Rs.4,00,000 & equity share capital balance was Rs.10,00,000.If dividend declaration totaled Rs.16,000 & Rs.30,000 in the year 2005-06 & 2006-07 respectively ,the dividend allocated to the equity share holders in the year Rs.2006-07 =? Show Answer

Q129) M ltd forfeited 50 shares of Rs.100 each issued at a premium of 10% on which the allotment money of Rs.30 per share (including premium) & first call of Rs.30 per share were not received & final call of Rs.20 per share was not yet called & 20 of these shares were reissued as Rs.80 paid up for Rs.70 per share .on forfeiture the share capital will be Show Answer

Q130) B ltd forfeited 50 shares of Rs.100 each issued at a premium of 10% on which the allotment money of Rs.30 per share (including premium) & first call of Rs.30 per share were not received & final call of Rs.20 per share was not yet called & if 20 of these shares were reissued as Rs.80 paid up for Rs.70 per share .on re-issue the share capital will be Show Answer

Q131) B ltd forfeited 50 shares of Rs.100 each issued at a premium of 10% on which the allotment money of Rs.30 per share (including premium) & first call of Rs.30 per share were not received & final call of Rs.20 per share was not yet called & if 20 of these shares were reissued as Rs.80 paid up for Rs.70 per share .on re-issue ,the share forfeiture a/c will be Show Answer

Q132) A ltd forfeited 50 shares of Rs.100 each issued at a premium of 10% on which the allotment money of Rs.30 per share (including premium) & first call of Rs.30 per share were not received & final call of Rs.20 per share was not yet called & 20 of these shares were reissued as Rs.80 paid up for Rs.90 per share .on profit on re-issue ,will be Show Answer

Q133) B ltd forfeited 50 shares of Rs.100 each issued at a premium of 10% on which the allotment money of Rs.30 per share (including premium) & first call of Rs.30 per share were not received & final call of Rs.20 per share was not yet called & 20 of these shares were reissued as Rs.80 called up for Rs.80 per share .on profit on re-issue ,will be Show Answer

Q134) B ltd forfeited 50 shares of Rs.100 each issued at a premium of 10% on which the allotment money of Rs.30 per share (including premium) & first call of Rs.30 per share were not received & final call of Rs.20 per share was not yet called & 20 of these shares were reissued as Rs.80 paid up for Rs.70 per share .on profit on re-issue ,will be Show Answer

Q135) G ltd forfeited 50 shares of Rs.100 each issued at a premium of 10% on which the allotment money of Rs.30 per share (including premium) & first call of Rs.30 per share were not received & final call of Rs.20 per share was not yet called & 20 of these shares were reissued as Rs.80 paid up for Rs.50 per share .on profit on re-issue ,will be Show Answer

Q136) B ltd forfeited 50 shares of Rs.100 each issued at a premium of 10% on which the allotment money of Rs.30 per share (including premium) & first call of Rs.30 per share were not received & final call of Rs.20 per share was not yet called & if 20 of these shares were reissued at Rs.70 per share as fully paid-up profit on re-issue ,will be Show Answer

Q137) H ltd forfeited 50 shares of Rs.100 each issued at a premium of 10% on which the allotment money of Rs.30 per share (including premium) & first call of Rs.30 per share were not received & final call of Rs.20 per share was not yet called & if 20 of these shares were reissued as Rs.80 paid up for Rs.90 per share .on profit on re-issue ,will be Show Answer

Q138) H ltd forfeited 50 shares of Rs.100 each issued at a premium of 10% on which the allotment money of Rs.30 per share (including premium) & first call of Rs.30 per share were not received & final call of Rs.20 per share was not yet called & 20 of these shares were reissued as Rs.80 called up for Rs.80 per share .on profit on re-issue ,will be Show Answer

Q139) B ltd forfeited 50 shares of Rs.100 each issued at a premium of 10% on which the allotment money of Rs.30 per share (including premium) & first call of Rs.30 per share were not received & final call of Rs.20 per share was not yet called & if 20 of these shares were reissued as Rs.80 paid up for Rs.70 per share on profit on re-issue ,will be Show Answer

Q140) W ltd forfeited 50 shares of Rs.100 each issued at a premium of 10% on which the allotment money of Rs.30 per share (including premium) & first call of Rs.30 per share were not received & final call of Rs.20 per share was not yet called & if 20 of these shares were reissued as Rs.80 paid up for per share on profit on re-issue, will be Show Answer

Q141) R ltd forfeited 60 shares of Rs.10 each issued at a premium of 20% to M who had applied for 72 shares ,for nonpayment of the allotment money of Rs.5 per share(including premium) & first & final call of Rs.5 per share .out of these 20 shares were reissued to Mr.H credited as fully paid for Rs.9 per share .the profit on re-issue ,will be Show Answer

Q142) Q ltd forfeited 40 shares of Rs.10 each issued at a premium of 20% to M who had applied for 48 shares ,Mr. M paid Rs.2 per share on application & did not pay the allotment money of Rs.5 per share(including premium) & first call of Rs.3 per share .out of these 20 shares were reissued to Mr.H credited as fully paid for Rs.9 per share .the profit on re-issue ,will be Show Answer

Q143) E ltd forfeited 300 shares of Rs.10 each fully called up ,held by ram non payment of the allotment money of Rs.3 per share(including premium) & final call of Rs.4 per share .out of these 250 shares were reissued to Mr.U for the total payment of Rs.2,000. the profit on re-issue ,will be Show Answer

Q144) E ltd forfeited 200 shares of Rs.10 each (Rs.8 called up ) on which the holder had paid application & allotment money of Rs.5 per share .out of these 50 shares were reissued to Mr.U as fully paid for Rs.8 per share.the profit on re-issue is Show Answer

Q145) Nominal value of shares allotted to the public is called ______ capital. Show Answer

Q146) Paid up value of shares allotted is called___ capital. Show Answer

Q147) As per SEBI guidelines, the minimum amount payable on share application should be _______ of nominal value of share. Show Answer

Q148) As per Table A, the amount on call on a share must not exceed _____ percent. Show Answer

Q149) If articles are silent regarding interest on calls-in-arrears, the minimum rate of interest to be charged is_______ Show Answer

Q150) If the articles are silent regarding interest on calls-in-advance, the minimum rate of interest to be charged is _______ Show Answer

Q151) The document inviting offers from public to subscribe its share is called______ Show Answer

Q152) If shares are issued at its face value, it is called as issue at______ Show Answer

Q153) ______ is deducted from the share capital to know paid up value of shares. Show Answer

Q154) Interest on calls-in-arrears is ____ for the company Show Answer

Q155) When shares are forfeited, share capital account is______ Show Answer

Q156) The excess price received over the par value of shares, should be ______to Securities Premium A/c Show Answer

Q157) The shares which are redeemed after a particular period are called______ Show Answer

Q158) A share is a ______ property Show Answer

Q159) Share capital of a joint stock company is a_____ Show Answer

Q160) A shareholder is a ______ of a joint stock company Show Answer

Q161) Preference shares entitled to arrears of dividend are known as_____ Show Answer

Q162) The capital with which a company is registered is called_____ Show Answer

Q163) A person who purchases shares of a company is known as______ Show Answer

Q164) The amount of capital which is actually subscribed by the public is known as______ Show Answer

Q165) The shares which can claim the arrears of dividend in future are known as_______ shares Show Answer

Q166) ______ capital is issued or used at the time of winding up of company. Show Answer

Q167) The liability of a shareholder of public limited company is limited. Show Answer

Q168) Equity shareholder enjoys preferential rights Show Answer

Q169) Equity share is a guarantee of fixed rate of dividend Show Answer

Q170) In private placement shares are issued to public through prospectus. Show Answer

Q171) Private placement method saves time and cost. Show Answer

Q172) In public issue whole amount of share capital is called at once. Show Answer

Q173) Shares are always issued at par. Show Answer

Q174) A public company can issue shares at only rate of discount. Show Answer

Q175) A public company forfeits share on non-payment of final call only. Show Answer

Q176) Forfeited shares are reissued at par only. Show Answer

Q177) Share forfeited balance is transferred to Capital Reserve Account. Show Answer

Q178) Shares are issued for cash only. Show Answer

Q179) Share Capital is a borrowed capital. Show Answer

Q180) Equity shareholders having voting rights on all matters. Show Answer

Q181) Share capital is an owned capital. Show Answer

Q182) Preference Shares can be redeemed after a certain period of time. Show Answer

Q183) Every company has to create Reserve Capital. Show Answer

Q184) Entire profit is distributed among the share holders as dividend. Show Answer

Q185) The market value of equity share is equal to its face value. Show Answer

Q186) Authorised Capital of a company is always equal to its face value. Show Answer

Q187) Which type of share may have dividends in arrears? Show Answer

Q188) The Directors of a company forfeited 200 Equity shares of Rs.10 each on which Rs.8 has been paid. The shares were re-issued upon payment of Rs. 1500. Amount transferred to capital reserve will be. Show Answer

Q189) X Ltd forfeited 30 shares of Rs. 10 each fully called up, held by Kanai for non payment of allotment money of Rs. 3 per share and final call of Rs. 4 per share. He had paid application money of Rs.3 per share.These shares were re-issued to Karim for Rs. 8 per share.Amount transferred to capital reserve will be Show Answer

Q190) ABC Ltd issued 1000 shares of Rs. 100 each at a premium of Rs.15 per share,payable as under:On application Rs.30; On Allotment Rs. 45 (including premium); On First and Final Call Rs.40. Mr. Trivedi to whom 100 shares were allotted did not pay the allotment money. As a result his shares were forfeited and they were re-issued to Mr. Chaturvedi at Rs.95 per share as fully paid. Thereafter, the call was made. The call money payable by Mr. Chaturvedi Show Answer

Q191) G Ltd. acquired asset 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 purchase consideration will be Show Answer

Q192) 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 will be Show Answer

Q193) Jitu Ltd. reissued 2,000 shares of Rs.10 each, which were forfeited by crediting Share forfeiture account by Rs.3,000. These shares were reissued at Rs.9 per share. The amount to be transferred to Capital Reserve account will be Show Answer

Q194) AB Ltd. issued 25,000 equity share of Rs.100 each at a premium of Rs.15 each payable as Rs.25 on application Rs.40 on allotment and balance in the first call. Applications received for 75,000 equity shares but the company issued to them only 25,000 shares. The above is the case of ___. Show Answer

Q195) A Limited Company purchased machine worth Rs.1,15,000 from Indian Traders. Payment was made as to Rs.10,000 by cross Cheque and the remaining amount by issue of Equity Shares of the face value of Rs.10 each fully paid at an issue price of Rs.10.50 each. Amount of share premium will be Show Answer

Q196) The amount to be collected on application of shares should be Show Answer

Q197) Securities premium can be used for Show Answer

Q198) Bonus shares can be issued out of Show Answer

Q199) Profit on reissue of forfeited shares is transferred to Show Answer

Q200) When shares to be forfeited were issued at a premium and the premium money which was duly received on the shares forfeited, the treatment of securities premium amount will be as follows Show Answer

Q201) In case of oversubscription if shares are allotted pro rata, the excess application money received on shares allotted is Show Answer

Q202) The accounting entry involved for issue of shares to promoters for the services rendered by them is Show Answer

Q203) The maximum amount beyond which a company is not allowed to raise funds, by issue of shares is Show Answer

Q204) The Authorized Share Capital of A Ltd. is Rs.20,00,000 of Rs.100 each issued at a premium of 50%. The issued / called up and paid-up Equity Share Capital of the company is Rs.10,00,000. The company announced a Rights issue of four shares of Rs.100 each at a premium of 160% for every five shares held by the existing shareholders. The market value of the share at the time of rights issue is Rs.440. All the rights have been subscribed and paid-up by the existing shareholders. The balance in Equity Share Capital A/c after the right issue is ________. Show Answer

Q205) The Authorized Share Capital of A Ltd. is Rs.20,00,000 of Rs.100 each issued at a premium of 50%. The issued / called up and paid-up Equity Share Capital of the company is Rs.10,00,000. The company announced a Rights issue of four shares of Rs.100 each at a premium of 160% for every five shares held by the existing shareholders. The market value of the share at the time of rights issue is Rs.440. All the rights have been subscribed and paid-up by the existing shareholders. The balance in securities premium ac after the right issue is_______. Show Answer

Q206) R Ltd has accumulated large profits in the Reserve Account and the directors decide to capitalize part of the reserves by converting partly paid shares into fully paid up shares and issuing Bonus shares. The paid up share capital of the company is Rs.10,00,000 consisting of 90,000 Class A Equity shares of Rs.10 each fully paid and 20,000 Class BEquity shares (FVRs.10 each) Rs.5 per share paid up. The directors decide to issue two bonus shares at par of Rs.10 for every fully paid share held and to make the partly paid shares fully paid in respect of Class B Equity Shares. At the date of the allotment of bonus shares the market value of the class B Equity Share stands at Rs.33.The amount of reserves to be capitalized = ? Show Answer

Q207) Which of the following statements is false with regard to Rights Issue? Show Answer

Q208) Which of the following statements is true with regard to declaring & issuing of Bonus Shares ? Show Answer

Q209) A share denotes a ______part of company's share capital. Show Answer

Q210) A company has an identity quite_______ from innumerable individual as ______. Show Answer

Q211) Reserve Capital of a company is meant to be called for the purpose of ____only Show Answer

Q212) A share forms the basis of _______ in a company. Show Answer

Q213) Minimum Subscription denotes the _________of capital, which must be raised by a company before it can proceed to _____of shares. Show Answer

Q214) The amount of calls in arrear is deducted from _____capital to arrive at ____capital. Show Answer

Q215) Premium on issue of shares is shown in the balance sheet on ______side Show Answer

Q216) Pavan Ltd. Authorized capital 60,000 shares of 10 each. 4,000 fully paid shares were issued to promoters for their services. This amount will be debited to ____ Show Answer

Q217) According to Table F of the companies Act, Interest on calls in arrears is charged @____ Show Answer

Q218) Application money , as per SEBI on a share of Rs.50 should be at least _____
as per SEBI Show Answer

Q219) Interest on calls in advance is allowed @ ____.as per table F Show Answer

Q220) Call money on shares should not exceed ____ of the face value of shares. Show Answer

Q221) A notice of __ days is must for the payment of calls on shares. Show Answer

Q222) _____of the option means giving an option to the employees to subscribe to the shares of the company. Show Answer

Q223) ________is the process by which the employee is given the right to apply for shares of the company against the option granted to him in pursuance of employee stock option scheme (ESOS) Show Answer

Q224) ___ means a right granted to an employee in pursuance of ESOS to apply for shares of the company at a pre-determined price. Show Answer

Q225) Suppose a company grants 200 options to its employees at the rate of Rs.30 per option and on that date the market price of share is Rs.160, the value of options will be_____. Show Answer

Q226) Accounting value of an option is also known as __________. Show Answer

Q227) In respect of options granted during any accounting period the ___ value of the options shall be treated as another form of employee compensation in the financial statements of the company. Show Answer

Q228) The accounting value of options shall be equal to the aggregate, over all employee stock options granted during the accounting period, of the ____ value of the option. Show Answer

Q229) In Balance Sheet, Employee Stock Options Outstanding will appear as part of _____. Show Answer

Q230) The maximum shares of company can issue called ___share capital. Show Answer

Q231) If shares are issue above par, share are said to be issue at a____ if below par, at ______ Show Answer

Q232) Preference shareholders are ______of the company. Show Answer

Q233) The liability of every shareholders of a company is _____ Show Answer

Q234) Share application is a ______account. Show Answer

Q235) A new company cannot issue shares at______. Show Answer

Q236) Premium received on issue of shares is shown on the______ side of the balance sheet. Show Answer

Q237) Calls-in-advance can be received only if authorized by _____. Show Answer

Q238) Because its shares have perpetual life and are negotiable, a company has continuous life. Show Answer

Q239) Shareholders have limited liability; they may lose whatever they paid for their shares but not more. Show Answer

Q240) Preference share is usually issued only to managers and directors, not to the general public of investors. Show Answer

Q241) Preference share has preference in the claim on cash dividends over Equity share but the amount of dividends paid to preferred share is limited to a fixed amount per year. Show Answer

Q242) A company is legally required to pay cash dividends on its equity shares every year when net income is earned. Show Answer

Q243) A rights issue of shares might increase the share premium account whereas a bonus issue is likely to reduce it. Show Answer

Q244) A rights issue of shares might increase the share capitalaccount whereas forfeiture of shares is likely to reduce it. Show Answer

Q245) A rights issue of shares may increase the number of shareholders in a company whereas a bonus issue will reduce it. Show Answer

Q246) According to Table F of the companies Act, Interest on calls in arrears is charged @ 12%. Show Answer

Q247) Application money on a share of Rs.50 should be at least Rs.10. Show Answer

Q248) Interest on calls in advance is allowed @10% Show Answer

Q249) Call money on shares should not exceed 1/3 of the face value of shares. Show Answer

Q250) A notice of 21 days is must for the payment of calls on shares. Show Answer

Q251) Grant is the process by which the employee is given the right to apply for shares of the company against the option granted to him in pursuance of employee stock option scheme (ESOS). Show Answer

Q252) Vesting means giving an option to the employees to subscribe to the shares of the company. Show Answer

Q253) Option means the obligation of an employee in pursuance of ESOS to apply for shares of the company at a pre-determined price. Show Answer

Q254) Option discount means the excess of the market price of the share at the date of grant of the option under ESOS over the actual price of theoption (including up-front payment, if any). Show Answer

Q255) Amortized value of options lapsed = No. of options lapsed x discount x time interval between the date of lapse and vesting period / vesting period. Show Answer

Q256) Unamortized value of options lapsed = No. of options lapsed x discount x time interval between the offer date and date of lapse / vesting period. Show Answer

Q257) Rights issue is made to the existing shareholders. Show Answer

Q258) In Rights issue too there is a chance of over-subscription and pro-rata allotment of shares. Show Answer

Q259) The price of a Rights share can be below the existing market price per share. Show Answer

Q260) A Bonus issue results in decrease in retained earnings. Show Answer

Q261) Share Application Account is a personal Account. Show Answer

Q262) A bonus issue can be made out of capital reserve. Show Answer

Q263) A bonus issue can be made only after 12 months from the date of incorporation. Show Answer

Q264) A bonus issue can be made only after 12 months from the date of any public / rights issue. Show Answer

Q265) A bonus issue can be made only after 12 months from the date of commencement of business. Show Answer

Q266) Rights shares mean the shares which are offered by a company to the existing shareholders. Show Answer

Q267) Rights shares means the shares which are offered by a company by converting partly paid shares into fully paid shares. Show Answer

Q268) Right shares mean the shares which are offered by directors of a company to their friends and relatives at lower prices. Show Answer

Q269) Forfeited shares cannot be issued at a premium Show Answer

Q270) At the time of forfeiture of shares, share premium should not be debited with the amount of premium already received Show Answer

Q271) The loss on re-issue of shares cannot be more than the gain on forfeiture of those shares. Show Answer

Q272) Unless otherwise stated. A preference share is always presumed to be Show Answer

Q273) Upon forfeiture of share, share capital account is debited by Show Answer

Q274) The profit made on reissue of forfeited shares is transferred to Show Answer

Q275) X co. Ltd forfeited 20 shares of Rs.10 each on which Rs. 5 per share were paid. The company reissued these shares @ Rs.8 fully paid up. Amount transferred to capital reserve will be Show Answer

Q276) The director of E ltd.made the final call of Rs.30 per share on May 15,2004 indicating the last date payment of call money to be May 31,2004 . Mr X holding 5,000 shares paid the call money on July 15,2004. if the company adopts Table F , The amount of the interest on call-in-arrears to be paid by mr.X Show Answer

Q277) D issued 2,00,000 shares of Rs.100 each at a premium of Rs.20 per share payable as follows :On application Rs.20 , on allotment Rs.50(including premium) , on first call Rs.30 , On second & final call Rs.20 . Application were received for Rs.3,00,000 shares and pro rata allotment was made to applicants of 2,40,000 shares .Money excess received on application were employed on account of sum due on allotment as part of share capital.E ,to whom 4,000 shares were allotted ,failed to pay the allotment money & on his subsequent failure to pay the first call,his shares were forfeited & F ,the holder of 6,000 shares failed to pay the two calls and his shares were forfeited after the second call.Of the forfeited shares ,8,000 shares were reissued to G at a discount of 10% ,the whole of E's forfeited shares being reissued .Amount refunded to shareholders Show Answer

Q278) The director of E ltd.made the final call of Rs.30 per share on Jan 15,2004 indicating the last date payment of call money to be Jan 31,2004 mr.C ,holding 7,500 shares paid the call money on Mar 15,2004. if the company adopts Table F , The amount of the interest on call-in-arrear to be paid by mr.C =? Show Answer

Q279) If the forfeited shares (which were originally issued at a discount ) are reissued at a premium ,the amount of such premium will be credited to Show Answer

Q280) Declared dividend should be classified in the balance sheet as a Show Answer

Q281) JKL ltd issued 20,000 shares of Rs.10 each at a premium of 20 % on may 01.2004, payable as follows ;On application Rs.4.5 (including premium), on allotment Rs.2.5, on first & final call Rs.5. Mr. E ,to whom 1,000 shares were allotted ,has paid Rs.5,000 on June 01,2004. At the time of remaining the allotment money ,he indicated that excess money should be adjusted towards the call money .the directors of the company made the first & final call on Oct.31,2004.The company has a policy of paying interest on call-in -advance. The amount of interest paid to Mr.E on call-in -advance Show Answer

Q282) When shares are forfeited ,the shares capital account is debited with___and the shares forfeiture account is credited with ____ Show Answer

Q283) The amount of capital ,to describe the shares offered to public for subscription is Show Answer

Q284) Issued capital includes Show Answer

Q285) As per table F, the amount of call on a share must not exceed Show Answer

Q286) The director of B ltd.made the final call of Rs.30 per share on May 15,2006 indicating the last date payment of call money to be May 31,2006. Mr.X ,holding 10,000 shares paid the call money on July 15,2006. if the company adopts Table F , The amount of the interest on call-in-arrears to be paid by Mr..X Show Answer

Q287) the following information retains to X ltd .i.Equity share capital called up Rs.10,00,000 ,ii Calls -in -arrears Rs.80,000 , iii Calls in advance Rs.50,000 , iv Proposed divided 15% .The amount of dividend payable =? Show Answer

Q288) W ltd forfeited 50 shares of Rs.100 each issued at a premium of 10% on which the allotment money of Rs.30 per share (including premium) & first call of Rs.30 per share were not received & final call of Rs.20 per share was not yet called & if 20 of these shares were reissued as Rs.80 paid up for Rs.30 per share on profit on re-issue ,will be Show Answer

Q289) Dividends are usually paid as a percentage of ______. Show Answer

Q290) As per the SEBI guidelines, on issue of shares, the application money should not be less than Show Answer