Practice Test

Q1) The companies are governed by ____ Show Answer

Q2) ____ is an artificial person created by law, having separate entity, with perpetual succession and a common seal. Show Answer

Q3) Which of the following can be treated as type of shares __________ Show Answer

Q4) Preference shares are those which carry the preferntial rights as to _____________ Show Answer

Q5) ______ will be entitled to receive arrears of their dividend. Show Answer

Q6) Generally prefernce shareholders do not have any voting right except when dividend is outstanding for ____ cumulative preference shares and ________ for non cumulative prefernce shares. Show Answer

Q7) Which of the following right may be given to prefernce shareholder if provided by Articles ? Show Answer

Q8) Which of the following right may be given to prefernce shareholder if provided by articles ? Show Answer

Q9) Equity shareholder is ___________ Show Answer

Q10) _________ have the right to vote on any resolution placed before the company or general meeting. Show Answer

Q11) Amount of capital stated in the Memorandum of Association as the share capital of the company is known as _________ Show Answer

Q12) _____ refers to that part of the authorised capital which has actually been offered to the public for subscription. Show Answer

Q13) _____ refers to that part of the issued capital which has actually been subscribed by the public. Show Answer

Q14) _____ refers to that part of the subscribed capital which has actually been paid by the shareholder to whom shares has been allotted. Show Answer

Q15) Public companies issue shares to public through document called Show Answer

Q16) _______ means the appropriation of certain number of shares to an applicant who has applied shares in public issue by the board of director in consultation with stock exchange Show Answer

Q17) The issuer company can not make allotment of shares unless . Show Answer

Q18) The minimum subscription is the of the issued amount Show Answer

Q19) When shares are issued at price equal to the face value, they are said to be issued at . Show Answer

Q20) When shares are issued at price higher than the face value, they are said to be issued at . Show Answer

Q21) When shares are not payable in lumpsum, first installment is called . Show Answer

Q22) When shares are not payable in lumpsum, second installment is called . Show Answer

Q23) When shares are not payable in lumpsum, third installment is called . Show Answer

Q24) When shares are not payable in lumpsum, fourth installment is called . Show Answer

Q25) The premium on issue of shares must be treated as . Show Answer

Q26) The premium on issue of shares must be credited to a separate account called . Show Answer

Q27) Security premium account must be shown seprately on the liability side of the balance sheet under the heading . Show Answer

Q28) Account due on calls made but not paid is known as . Show Answer

Q29) If the number of shares applied for is less than the number of shares issued the shares are said to be . Show Answer

Q30) If the number of shares applied for is more than the number of shares issued the shares are said to be . Show Answer

Q31) In case of oversubscription of shares each applicant receives the shares in some propotion, it is known as . Show Answer

Q32) 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

Q33) As per Table F interest on calls in advance can be paid at p.a. Show Answer

Q34) As per Table F interest on calls in arrear can be received at p.a. Show Answer

Q35) The interest on calls in advance is paid for the period from the . Show Answer

Q36) Balance of interest on calls on arrear account is transferred to the at the end of the year. Show Answer

Q37) A company may allot fully paid shares to promters or any other party for the services rendered by them share capital account is credited and debited. Show Answer

Q38) _______may be said to be compulsory termination of membership by way of penalty for non-payment of allotment and/ or any call money Show Answer

Q39) Balance of interest on calls on advance account is transferred to the at the end of the year. Show Answer

Q40) Which of the following security can be forfeited for non-payment of allotment or call money? Show Answer

Q41) Which of the following security can not be forfeited for non-payment of allotment or call money? Show Answer

Q42) 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 not re- issued. Show Answer

Q43) The forfeited shares must be reissued at Show Answer

Q44) Balance of share forfeiture account remaining after reissue is transferred to . Show Answer

Q45) If forfeited shares are reissued at a premium, the amount of such premium should be credited to . Show Answer

Q46) Shareholder are ________ of the company Show Answer

Q47) Dividends are of profits Show Answer

Q48) N Ltd. issued 100000 equity shares of Rs.10 each to the public at par. Full amount payable at the time of application. Application were received for 120000 shares. Excess application monies were refunded. Amount to be credited to share capital account should be _____ Show Answer

Q49) S ltd. issued 100000 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 120000 shares. Excess application monies were refunded. Amount to be crdited to share capital a/c should be ___ Show Answer

Q50) The subscribed share capital of S ltd. is Rs.8000000 of Rs.100 each. There were no calls in arrears till the final call was made. The final call made was paid on 77500 shares. The calls in arrears amounted to Rs.62500 The final call per share =? Show Answer

Q51) On 01.01.2009, X ltd. marks an issue of 100000 equity shares of Rs.100 each payable as follows : Application - Rs.20, Allotment - Rs.30, Final call - Rs.50 (3 months after allotment) Applications were received for 120000 shares and the directors refunded the excess application money. One shareholder, who was allotted 2000 shares paid first and final call with allotment money and another shareholder did not pay allotment money on his 3000 shares but which he paid with first and final call. Directors have decided to charge and allows interest, according to the provisions of Table-F. The amount of interest on calls-in-arrears = ? Show Answer

Q52) On 01.01.2009, X ltd. marks an issue of 100000 equity shares of Rs.10 each payable as follows : Application - Rs.20, Allotment - Rs.30, Final call - Rs.50 (3 months after allotment) Applications were received for 120000 shares and the directors refunded the excess application money. One shareholder, who was allotted 2000 shares paid first and final call with allotment money and another shareholder did not pay allotment money on his 3000 shares but which he paid with first and final call. Directors have decided to charge and allows interest, according to the provisions of Table-A. The amount of interest on calls-in-advance = ? Show Answer

Q53) W ltd. issued 200000 shares of rs.100 each at a premium of 20% on 01.05.2009 payable as follows : On application - Rs.45(incl premium), On allotment - Rs.25, On first & final call - Rs.50. Sunil to whom 10000 shares were allotted, has paid Rs.500000 at the time of allotment on 01.06.2009. 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 & final call on 31.10.2009 The company has a policy of paying interest on calls-in-advance as per Table F. the amount of interest paid to sunil on calls-in-advance = ? Show Answer

Q54) N ltd. purchased machinery costing Rs.10000 and issued share of Rs.10 to vendor. The number of shares to be issued to vendor = ? Show Answer

Q55) S ltd. purchased building costing Rs.120000 and issued share of Rs.10 each at Rs.12 to vendor. The no. of shares to be issued to vendor = ? Show Answer

Q56) N ltd. issued 5000 shares @ Rs.10 to promoters for their service relating to incorporation. Appropriate journal entry to record this ____ Show Answer

Q57) R ltd. purchased the business of C Ltd. for Rs.270000 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 considertaion = ? Show Answer

Q58) R ltd. purchased the business of C Ltd. for Rs.270000 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%. The number. of shares to be issued by R ltd. to settle the purchase considertaion = ? Show Answer

Q59) S Ltd. acquired fixed assets worth Rs.1500000 by issue of shares of Rs.100 at a premium of 25%. The no. of shares to be issued by S ltd. to settle the purchase consideration = ? Show Answer

Q60) Q ltd. had allotted 100000 shares to the applicants of 140000 shares on pro rata basis. The amount payable on application is Rs.2 Mr. N applied for 4200 shares. The number of shares alloted and the amount carried forward for adjustment against allotment money due from Mr. N = ? 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 call 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 for share capital account will be credited by Rs. ______ 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 call 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.10 each. On reissue amount to be transferred to capital reserve a/c = ? 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 call 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. On reissue amount to be transferred to capital reserve a/c = ? Show Answer

Q64) 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 call 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. On reissue amount to be transferred to capital reserve a/c = ? 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 (incl. Rs.2 premium), first call of Rs.2 and final call 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

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 (incl.Rs.2 premium), first call of Rs.2 and final call 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

Q67) 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 (incl.Rs.2 premium), first call of Rs.2 and final call 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

Q68) W ltd. forfeited 400 equity shares of Rs.10 fully called-up, held by Mr. P for non payment of final call of Rs.4 each. However, he paid application money @ Rs.2, allotment money Rs.2 and first call Rs.2 per share. These shares were reissued at Rs.10 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 call of Rs.4 each. However, he paid application money @ Rs.2 per share, allotment money @ Rs.2 per share and first call Rs.2 per share. These shares were reissued at Rs.7 each. On reissue amount to be transferred to capital reserve a/c = ? Show Answer

Q70) W ltd. forfeited 400 equity shares of Rs.10 fully called-up, held by Mr. P for non payment of final call of Rs.4 each. However, he paid application money @ Rs.2 per share, allotment money @ Rs.2 per share and first call Rs.2 per share. These shares were reissued at Rs.13 each. On reissue amount to be transferred to capital reserve account = ? Show Answer

Q71) 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 were reissued at Rs.7 per share as showing Rs.8 paid up. On reissue amount to be transferred to capital reserve account =? Show Answer

Q72) A company has subscribed capital of 200000 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 theses shares as Rs.20 per share paid up at Rs.15 per share. On reissue amount transferred to capital reserve account = ? Show Answer

Q73) Sukriti Ltd. forfeited 100 shares of Rs.10 each for non-payment of final call of Rs.2. Of these, 60 shares were reissued @ Rs.9 per share as fully paid. On reissue amount to be transferred to capital reserve account = ? Show Answer

Q74) Z ltd. issued 10000 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 first call money of Rs.2 per share. He paid Rs.6 per share for application and allotment money. On forfeiture, the share capital account will be _____ Show Answer

Q75) 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 5:4. These shares were subsequently re-issued at a discount of Re.1 per share, credited as Rs.8 paid-up. on reissue amount to be transferred to capital reserve a/c = ? Show Answer