Company Accounts

Share Capital

Medium

common

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 ...........

9%, Rs 750

10%, Rs 833

11%, Rs 917

12%, Rs 1000

✅ Correct Option: 4

Given information:

Amount received in advance for second and final call = Rs 50,000
Period for which amount was received in advance = 2 months

Finding the maximum rate:

According to Table F of the Companies Act, 2013, interest on calls in advance should not exceed 12% per annum.

Calculating Interest on Calls in Advance:

Using the simple interest formula:

Interest = $\frac{\text{Principal} \times \text{Rate} \times \text{Time}}{100}$

Interest = $\frac{50,000 \times 12 \times 2}{100 \times 12}$

Interest = $\frac{50,000 \times 12 \times 2}{1,200}$

Interest = Rs 1,000

The time is taken as $\frac{2}{12}$ years since interest rate is per annum and the advance was received for 2 months (from first call date until second call due date).

Answer: 12%, Rs 1,000

2026: 23 May Shift 2

The amount of security premium reserve cannot be used for:

2022: 23 Aug Shift 2

Match List - I with List - II.

List - I	List - II
(A) Share forfeiture	(I) Cr. share capital
(B) Shares reissued	(II) Dr. share capital
(C) Excess application money refunded	(III) Dr. Bank A/c
(D) Calls money received	(IV) Cr. Bank A/c

Choose the correct answer from the options given below :

2026: 24 May Shift 1

Match List-I with List-II

List-I	List-II
(A) A company is formed according to the provisions of Law enforced from time to time.	(I) Common Seal
(B) A company can hold and deal with any type of property.	(II) Body Corporate
(C) The company continues to exist irrespective of the changes in its membership.	(III) Separate Legal Entity
(D) The company cannot sign its name by itself.	(IV) Perpetual Succession

Choose the correct answer from the options given below:

2026: 31 May Shift 1

Applications Supported by Blocked Amount (ASBA) is a process developed by........................to apply for subscribing to IPOs and Rights Issue etc. of securities.

2026: 21 May Shift 2

Securities Premium can be used only for the following purposes:

A. To issue fully paid bonus shares to the extent not exceeding unissued share capital of the company;

B. To issue partly paid bonus shares to the extent not exceeding unissued share capital of the company;

C. To write-off the expenses of, or commission paid, or discount allowed on any securities of the company; and

D. Purchase of its own shares (i.e., buy back of shares)

Choose the correct answer from the options given below:

2022: 16 July Shift 2

The Balance Sheet of the company will show authorised capital of the company as _______ .

Solution

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