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CUET Accountancy 2022 PYQs15 July Shift 2. Free, no login required.

Company Accounts

past year questions, CUET Accountancy 2022 15 July Shift 2

Share Capital

past year questions, Company Accounts, CUET Accountancy 2022 15 July Shift 2

Easy

Hero Ltd, started a new venture of making casual shirts. The directors decided to issue 5,000,00 shares of Rs. 10 each at Rs. 12 each. The following assets were purchased by the company

A building of Rs. 10 lakhs

Furniture of Rs. 7 lakhs

Machinery of Rs. 2 lakhs

The company purchased cloth of Rs. 20 lakhs and paid wages Rs. 5,00,000 to the workers. The Directors also decided to buy 10,000 shares of TATA Ltd. of Rs. 10 each and at the end of the year Tata Ltd. Paid Rs. 10,000 as dividend

Security Premium Reserve can be used by Hero Ltd. for

Solution

✅ Correct Option: 3

Under Section 52 of the Companies Act 2013, Securities Premium Reserve can only be used for specified purposes, including issuing fully paid bonus shares, writing off preliminary expenses, writing off discount or expenses on issue of shares/debentures, providing premium on redemption of preference shares/debentures, and buy-back of own shares. Buying raw materials, fixed assets, or making investments is not permitted.

More from this set:

Question 42

Dividend received by Hero Ltd. would be _______ activity

Question 43

Amount of Security Premium Reserve will be shown in

Question 44

Dividend paid by TATA Ltd. is which activity for the company?

Question 45

What is the Cash flow from investing activities?

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CUET Accountancy Past Year Questions (Topic-Wise)