Company Accounts

Share Capital

Medium

common

Which of the following are correct with respect to Rule 3 of the Companies (Incorporation) Rules, 2014 for One Person Company?

(A) Only a natural person being an Indian citizen and resident in India can form one person company.

(B) It cannot carry out non-banking financial investment activities.

(C) Its paid up share capital is not more than Rs. 50 Lakhs.

(D) Its average annual turnover of three years does not exceed Rs. 5 Crores.

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

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

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

(A), (C) and (D) only

✅ Correct Option: 1

An OPC can be formed only by a natural person who is an Indian citizen and resident in India, so (A) holds. It cannot carry on non-banking financial investment activity, so (B) holds. The prescribed paid up capital ceiling is Rs. 50 lakh, so (C) holds. The turnover ceiling is an average annual turnover of Rs. 2 crore, not Rs. 5 crore, so (D) fails.

Note: The capital and turnover ceilings sit in the conversion rules read with Rule 3; we have answered as per the textbook treatment.

2026: 29 May Shift 2

Match the LIST-I with LIST-II

LIST-I		LIST-II
A.	Issued Capital	I.	Portion of capital which has been actually received from the shareholders.
B.	Subscribed Capital	II.	Portion of capital to be called only in the event of winding up of the company
C.	Paid up Capital	III.	Portion of issued capital which has been actually subscribed by the public.
D.	Reserve Capital	IV.	Portion of capital which is actually issued to the public for subscription.

Choose the correct answer from the options given below:

2025: 4 June Shift 2

The maximum number of members in a private company can be .......

2025: 4 June Shift 2

The director of Poly Plastic Limited resolved that 200 equity shares of Rs.100 each be forfeited for non-payment of the second and final call of Rs.30 per share. Out of these, 150 shares were re-issued at Rs.60 per share to Mohit. Journal entry for creating capital reserve will be:

2025: 14 May Shift 1

A company failed to receive Rs 2,00,000 on First and final Call. Interest on calls in arrears is charged according to 'Table F' at:

2025: 2 June Shift 2

R Ltd purchased a building from X Infra for Rs 6,00,000 and the payment is to be made by the issue of shares for Rs 100 each at a premium of 20%. Calculate the number of shares to be issued.

2026: 21 May Shift 2

In case of over subscription, three alternatives are available to the directors to deal with the situation:. Find the odd alternative.

Solution

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