Company Accounts

Share Capital

Easy

The amount on any call should not exceed ___ of the face value of shares.

20%

25%

30%

15%

✅ Correct Option: 2

According to the Companies Act provisions related to share capital, the amount called on any single call should not exceed 25% of the face value of shares.

This restriction ensures that shareholders are not burdened with large payments at once and the liability is spread across multiple calls.

Example:

If a share has a face value of ₹100:

Maximum call amount = 25% of ₹100 = ₹25

If the company needs to collect more than 25% of the unpaid amount, it must make multiple calls with adequate time intervals between them.

Correct Answer: Option 2 (25%)

2026: 21 May Shift 1

Capital reserves are created from _______.

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: 21 May Shift 1

Securities Premium cannot be used for the following purpose:

2026: 11 May Shift 1

The balance of Share Forfeiture account is shown as an addition to the total paid-up capital of the company. Under which head and title of the Balance Sheet it will be shown, until the forfeited shares are reissued?

A. 'Share Capital' under the title "Liabilities and Equity"

B. 'Reserve and Surplus' under the title "Liabilities and Equity"

C. 'Shareholders' Funds' under the title of "Equity and Liabilities"

D. 'Share Capital' under the title 'Equity and Liabilities'

Choose the correct answer from the options given below:

2026: 11 May Shift 2

In case of company limited by shares,

2026: 21 May Shift 1

Match List-I with List-II

List-I	List-II
(A) Equity shareholders are	(I) Issued share capital
(B) The maximum amount of share capital which a company is authorised to issue	(II) Owners
(C) The profit on the reissue of forfeited shares is not transferred to	(III) Nominal share capital
(D) It is that part of the authorised capital which is issued by the company	(IV) Capital redemption reserve

Choose the correct answer from the options given below:

The amount on any call should not exceed ___ of the face value of shares.

Solution

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