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CUET Accountancy 2025 PYQs22 May Shift 1. Free, no login required.

Company Accounts

past year questions, CUET Accountancy 2025 22 May Shift 1

Share Capital

past year questions, Company Accounts, CUET Accountancy 2025 22 May Shift 1

Easy

common

Which company doesn't restricts the right to transfer its shares?

Solution

✅ Correct Option: 3

Private Company - As per Section 2(68) of Companies Act, 2013, a private company restricts the right to transfer its shares through its Articles of Association. This is one of the key distinguishing features of a private company.

Public Company - As per Section 2(71) of Companies Act, 2013, a public company does not restrict the right to transfer its shares. Shares of a public company are freely transferable, subject to provisions of the Act.

The free transferability of shares in a public company enables:

  • Easy buying and selling of shares in stock exchanges
  • High liquidity for shareholders
  • Wider participation of public in ownership

Therefore, if the question is asking about companies with share capital that allow free transfer, the answer would be Public Company (Option 3).

Note: Non-profit companies (Section 8 companies under Companies Act, 2013) are typically registered without share capital - they are limited by guarantee rather than shares. Since they don't have shares, the question of restricting transfer doesn't arise.

Related questions:

2026: 6 June Shift 1

In public subscription, when there is no articles of association, which of the following provision is not true?

2026: 23 May Shift 2

Select the correct statements with regard to accounting for Share Capital from the following:

A. Provisions of 'Table F' authorise the directors to forfeit the shares.

B. The maximum number of members in a private company is 200.

C. The minimum subscription of capital can not be less than 10% of issued capital.

D. Subscribed capital is also called nominal capital.

Choose the correct answer from the options given below:

2025: 2 June Shift 2

Match List-I with List-II

List-IList-II
(A) Authorized capital.(I) Mentioned in Prospectus.
(B) Issued capital.(II) Mentioned In Memorandum Of Association.
(C) Subscribed capital.(III) called up capital-calls in arrears.
(D) Paid up capital.(IV) Capital for which application is received.

Choose the correct answer from the options given below:

2025: 24 May Shift 1

Match List-I with List-II

List-IList-II
(Book/Theory proposed/Characteristic, etc.)(Author/Thinker/Name of Theory, etc.)
(A) Authorised Capital(I) Only available to creditors at the time of winding up of a company
(B) Issued Capital(II) The amount of capital that a company can raise in its life-time
(C) Subscribed Capital(III) Capital that is issued to the public for subscription
(D) Reserve Capital(IV) May be equal to or less than issued capital

Choose the correct answer from the options given below:

2025: 22 May Shift 1

Gupta Ltd. issued 1,000 equity shares of Rs. 100 each as fully paid-up, to the vendor, in consideration of the purchase of plant and machinery worth Rs. 1,00,000. Which of the following entry will be recorded in the company's journal for it?

2025: 14 May Shift 1

Rohan to whom 600 shares were allotted must have applied for:

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