Company Accounts

Share Capital

Easy

common

Match List-I with List-II

List-I List-II
(A) Restricts the right to transfer its shares (I) OPC
(B) A company which is a subsidiary of a public company (II) Private Company
(C) A company which has only one person as a member (III) Perpetual Succession
(D) Members may come and go but the company continues (IV) Public Company

Choose the correct answer from the options given below:

List-I	List-II
(A) Restricts the right to transfer its shares	(I) OPC
(B) A company which is a subsidiary of a public company	(II) Private Company
(C) A company which has only one person as a member	(III) Perpetual Succession
(D) Members may come and go but the company continues	(IV) Public Company

(A) - (II), (B) - (IV), (C) - (I), (D) - (III)

(A) - (II), (B) - (I), (C) - (III), (D) - (IV)

(A) - (IV), (B) - (II), (C) - (I), (D) - (III)

(A) - (III), (B) - (IV), (C) - (I), (D) - (II)

✅ Correct Option: 1

(A) Restricts the right to transfer its shares → A Private Company restricts the transfer of shares among its members. The Articles of Association of a private company contain clauses that limit the free transferability of shares, requiring approval from the Board of Directors or other members. This is one of the defining characteristics that distinguishes it from a public company.

(B) A company which is a subsidiary of a public company → As per Section 2(71) of the Companies Act, 2013, if a private company is a subsidiary of a public company, it is deemed to be a Public Company for all practical purposes, even if it retains certain private company characteristics.

(C) A company which has only one person as a member → This describes a One Person Company (OPC). An OPC is a special type of private company that can be formed with just a single member, allowing solo entrepreneurs to operate with limited liability protection.

(D) Members may come and go but the company continues → This illustrates the principle of Perpetual Succession, which means a company has continuous existence irrespective of changes in its membership. Members may die, retire, or transfer their shares, but the company continues to exist as a separate legal entity.

Correct matching: (A) - (II), (B) - (IV), (C) - (I), (D) - (III)

Option 1 is correct.

2026: 29 May Shift 1

Arrange the following in proper sequence, related to issue and forfeiture of shares

(A) Calls in arrears

(B) Shares are re-issued

(D) Shares forfeited for non payment of money

Choose the correct answer from the options given below:

2026: 29 May Shift 2

Which of the following are correct with respect to Rule 3 of the Companies (Incorporation) Rules, 2014 for One Person Company?

A. Only a natural person being an Indian citizen and resident in India can form one person company.

B. It cannot carry out non-banking financial investment activities.

C. Its paid up share capital is not more than Rs. 50 Lakhs.

D. Its average annual turnover of three years does not exceed Rs. 5 Crores.

Choose the correct answer from the options given below:

2025: 30 May Shift 1

Rahul Limited purchased a building from Handa Limited for Rs.5,40,000 and the payment is to be made by the issue of shares of Rs.100 each. What will the number of shares to be issued when shares issued at a premium of 20%?

2025: 26 May Shift 2

Rs 50,000 were received in advance for second and final call along with first call. The second and final call was due after two months from the first call. Table II provides for interest on calls in advance at the rate not exceeding _____ per annum and interest on calls in advance amounted to Rs ...........

2022: 15 July Shift 2

Security Premium Reserve can be used by Hero Ltd. for

2026: 12 May Shift 1

The premium amount collected from issue of shares can be used for the following purposes:

(A) To purchase own shares.

(B) To issue fully paid bonus shares to the extent not exceeding unissued share capital of the company.

(D) To write-off fixed assests from books.

Choose the correct answer from the options given below:

Solution

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