Company Accounts

Share Capital

Medium

common

Select the correct statements related to shares and share capital :

(A) Authorized Share Capital and Nominal Share Capital are different from each other.

(B) Equity shares cannot be redeemed during the lifetime of the company.

(C) Preference shares are not the real owner of the company.

(D) Equity shares cannot be issued to the public at a discount.

Choose the correct statements from the options given below:

(A), (B) and (C) only

(B), (C) and (D) only

(A), (B) and (D) only

(A), (B), (C) and (D)

✅ Correct Option: 2

(A) is false. Authorised, Nominal and Registered Capital are three names for the same thing.

(B) is true, since equity shares are permanent capital repaid only on winding up, apart from a buy back.

(D) is true under Section 53 of the Companies Act, 2013.

Hence (B), (C) and (D) only.

2026: 21 May Shift 1

Over Subscription means when applications received for shares of a company are more than the number of shares offered to the public for subscription. Identify correct statements regarding over subscription.

(A) This happens in respect of the share issue of well-managed and financially strong companies.

(B) The problem of over subscription is resolved with the forfeiture of shares.

(D) The problem of over subscription is usually resolved with the allotment of shares.

Choose the correct answer from the options given below:

2026: 21 May Shift 1

Mukesh Ltd. offered 4,00,000 shares, of Rs. 10 each to the public for subscription, to be received as Rs. 2 on application, Rs. 3 on allotment, Rs. 3 on first call and the balance on final call. The company received applications for 4,50,000 shares. The company finalised the allotment of 4,00,000 shares and rejected applications for 50,000 shares. The company did not make the final call. The company received all the amount except on 20,000 shares where call money has not been received. The amount of share capital that will be shown in the balance sheet of Mukesh Ltd. as:

2025: 24 May Shift 1

Arrange the following in the correct sequence:

(A) Called-up capital

(B) Subscribed capital

(D) Paid-up capital

Choose the correct answer from the options given below:

2022: 20 July Shift 1

MNO Ltd. forfeited 1,000 shares of Rs. 10 each on which shareholders had paid only application money of Rs. 3 per share. Out of these, 400 equity shares were reissued as fully paid for Rs. 9 per share. The gain on reissue of shares transferred to Capital reserve is :

2025: 3 June Shift 2

Arrange the following in order with respect to the issue of shares

(A) Application received

(B) Issue of prospectus

(D) Allotment of Shares

(E) Reissue of forfeited shares

Choose the correct answer from the options given below:

2025: 3 June Shift 2

Match List-I with List-II

List-I	List-II
(A) Calls in Arrears	(I) This is the case when applications for more shares of a company are received than the number offered to the public for subscription.
(B) Calls in Advance	(II) This 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 due that shareholders fail to pay on allotment or on any of the calls.
(D) Under Subscription	(IV) The amount sometimes received from the shareholders as a part or the whole of the amount of the calls not yet made.

Choose the correct answer from the options given below:

Solution

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