Company Accounts

Share Capital

Easy

common

Match List-I with List-II

List-I List-II
(A) Under Subscription (I) Issue of Shares at an amount more than the nominal or par value of shares.
(B) Issue of Shares at a Premium (II) It is a situation where the number of shares applied for is less than the number for which applications have been invited for subscription.
(C) Over Subscription (III) The amount so received from the shareholders when shareholders pay a part or the whole of the amount of the calls not yet made.
(D) Calls in Advance (IV) when applications for more shares of a company are received than the number offered to the public for subscription.

Choose the correct answer from the options given below:

List-I	List-II
(A) Under Subscription	(I) Issue of Shares at an amount more than the nominal or par value of shares.
(B) Issue of Shares at a Premium	(II) It is a situation where the number of shares applied for is less than the number for which applications have been invited for subscription.
(C) Over Subscription	(III) The amount so received from the shareholders when shareholders pay a part or the whole of the amount of the calls not yet made.
(D) Calls in Advance	(IV) when applications for more shares of a company are received than the number offered to the public for subscription.

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

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

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

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

✅ Correct Option: 2

(A) Under Subscription refers to a situation where the company receives applications for fewer shares than it offered to the public. This matches with (II) - "It is a situation where the number of shares applied for is less than the number for which applications have been invited for subscription."

(B) Issue of Shares at a Premium occurs when shares are issued at a price higher than their face value (nominal/par value). For example, if a share with face value of ₹10 is issued at ₹15, the premium is ₹5. This matches with (I) - "Issue of Shares at an amount more than the nominal or par value of shares."

(C) Over Subscription is the opposite of under subscription - when the company receives applications for more shares than it offered to the public. This matches with (IV) - "when applications for more shares of a company are received than the number offered to the public for subscription."

(D) Calls in Advance represents money received from shareholders before the company has actually made the call. Shareholders voluntarily pay in advance for calls that are yet to be made. This matches with (III) - "The amount so received from the shareholders when shareholders pay a part or the whole of the amount of the calls not yet made."

The correct matching is: (A) - (II), (B) - (I), (C) - (IV), (D) - (III)

Answer: Option 2

2022: 8 Aug Shift 2

Amalgamation is a form of:

2025: 13 May Shift 2

Which statements are correct-

(A) A company's shares are generally transferable.

(B) Shareholders of a company are liable for the acts of the company.

(D) Paid up capital can exceed called up capital.

Choose the correct answer from the options given below:

2026: 13 May Shift 1

Varun Ltd. forfeited 40,000 equity shares of Rs. 100 each for non-payment of first and final call of Rs. 40 per share. The maximum amount of discount per share at which these shares can be re-issued will be :-

2025: 13 May Shift 1

Match List-I with List-II

List-I	List-II
(A) Authorised Capital	(I) Capital which is actually issued to the public for subscription including the shares allotted to vendors and the signatories to the company's memorandum.
(B) Issued Capital	(II) It is that part of the subscribed capital which has been called up on the shares, i.e., what the company has asked the shareholders to pay.
(C) Subscribed Capital	(III) The amount of share capital which a company is authorised to issue by its Memorandum of Association.
(D) Called up Capital	(IV) It is that part of the issued capital which has been actually subscribed by the public.

Choose the correct answer from the options given below:

2026: 11 May Shift 1

150 shares of Mr. Ram of Rs.10 each issued at a premium of Rs.4 per share payable with allotment were forfeited for non-payment of allotment money of Rs.8 per share including premium. The first and final call of Rs.4 per share was not made. The forfeited shares were reissued at Rs.15 per share fully paid-up. Calculate the amount transferred to capital reserve.

2026: 19 May Shift 1

Following is the extract of journal in BXC Ltd for Forfeiture of shares:

Date	Particulars	Debit(Rs.)	Credit(Rs.)
i	Share Capital A/c Dr.	20,000
	To Shares Forfeiture A/c		14,000
	To Share Second & Final Call A/c		6,000
	(Being shares forfeited for non-payment of final call at Rs.30 per share)
ii	Bank A/c Dr.	9,000
	Shares Forfeiture A/c Dr.	6,000
	To Share Capital A/c		15,000
	(Being Reissue of shares of Rs.100 each, issued as fully paid for Rs.60 each)

Which of the followings statements are true ?

(A) The number of reissued shares is 150.

(B) The number of reissued shares is 200.

(D) The amount of share forefeited A/c transferred to capital reserve A/c will be Rs 4500.

Choose the correct answer from the options given below:

Solution

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