CUET Accountancy - Company Accounts - Share Capital | Free Questions - Page 12

Q1:

2025: 16 May Shift 1

Company Accounts

>

Share Capital

Medium

Comprehension:

Read the following passage carefully and answer the questions.

X ltd. issued 30,000 shares to the public having Face value ₹ 100 at 10% premium. Money is receivable as follows:

Application = ₹ 40 (including premium)

Allotment = ₹ 45

First and Final call = Remaining amount

The public applied for 50,000 shares. The company rejected application for 10,000 shares and made a pro rata allotment to the rest of the applicants. A shareholder applying for 400 shares, didn’t pay the allotment and call money and his allotted shares were forfeited by the company. Later, the forfeited shares were reissued at ₹ 80 each as fully paid.

Amount to be credited to Calls-in Arrears account at the time of forfeiture is:

₹ 9,500

₹ 21,000

₹ 17,000

₹ 13,500

Correct Answer

Option 3

Correct Answer

Explanation

Q2:

2025: 16 May Shift 1

Company Accounts

>

Share Capital

Medium

Comprehension:

Read the following passage carefully and answer the questions.

X ltd. issued 30,000 shares to the public having Face value ₹ 100 at 10% premium. Money is receivable as follows:

Application = ₹ 40 (including premium)

Allotment = ₹ 45

First and Final call = Remaining amount

The public applied for 50,000 shares. The company rejected application for 10,000 shares and made a pro rata allotment to the rest of the applicants. A shareholder applying for 400 shares, didn’t pay the allotment and call money and his allotted shares were forfeited by the company. Later, the forfeited shares were reissued at ₹ 80 each as fully paid.

what amount is to be refunded while allotting shares on a Pro-rata basis

₹ 4,00,000

₹ 12,00,000

₹ 10,00,000

₹ 11,00,000

Correct Answer

Option 1

Correct Answer

Explanation

Q3:

2025: 16 May Shift 1

Company Accounts

>

Share Capital

Medium

Comprehension:

Read the following passage carefully and answer the questions.

X ltd. issued 30,000 shares to the public having Face value ₹ 100 at 10% premium. Money is receivable as follows:

Application = ₹ 40 (including premium)

Allotment = ₹ 45

First and Final call = Remaining amount

The public applied for 50,000 shares. The company rejected application for 10,000 shares and made a pro rata allotment to the rest of the applicants. A shareholder applying for 400 shares, didn’t pay the allotment and call money and his allotted shares were forfeited by the company. Later, the forfeited shares were reissued at ₹ 80 each as fully paid.

What is the amount of discount per share which is allowed by the company at the time of reissue of forfeited shares?

₹ 80

₹ 40

₹ 20

₹ 10

Correct Answer

Option 3

Correct Answer

Explanation

Q4:

2025: 16 May Shift 1

Company Accounts

>

Share Capital

Easy

Comprehension:

Read the following passage carefully and answer the questions.

X ltd. issued 30,000 shares to the public having Face value ₹ 100 at 10% premium. Money is receivable as follows:

Application = ₹ 40 (including premium)

Allotment = ₹ 45

First and Final call = Remaining amount

The public applied for 50,000 shares. The company rejected application for 10,000 shares and made a pro rata allotment to the rest of the applicants. A shareholder applying for 400 shares, didn’t pay the allotment and call money and his allotted shares were forfeited by the company. Later, the forfeited shares were reissued at ₹ 80 each as fully paid.

What type of subscription took place?

Full subscription

Under subscription

Over subscription

Partial Subscription

Correct Answer

Option 3

Correct Answer

Explanation

Q5:

2025: 16 May Shift 1

Company Accounts

>

Share Capital

Medium

Comprehension:

Read the following passage carefully and answer the questions.

X ltd. issued 30,000 shares to the public having Face value ₹ 100 at 10% premium. Money is receivable as follows:

Application = ₹ 40 (including premium)

Allotment = ₹ 45

First and Final call = Remaining amount

The public applied for 50,000 shares. The company rejected application for 10,000 shares and made a pro rata allotment to the rest of the applicants. A shareholder applying for 400 shares, didn’t pay the allotment and call money and his allotted shares were forfeited by the company. Later, the forfeited shares were reissued at ₹ 80 each as fully paid.

The amount of Security Premium Reserve shown under the sub-head 'Reserves and Surplus' will be:

₹ 3,00,000

₹ 2,70,000

₹ 2,97,000

₹ 3,03,000

Correct Answer

Option 1

Correct Answer

Explanation

Q6:

2025: 15 May Shift 2

Company Accounts

>

Share Capital

Easy

Arrange following in correct sequence related to issue of shares

(A) Letters of allotment, and letters of regret are sent

(B) Prospective investors would make an application along with the application money

(C) The company issues the prospectus to the public

(D) Sebsequent installment are called

Choose the correct answer from the options given below:

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

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

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

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

Correct Answer

Option 2

Correct Answer

Explanation

Q7:

2025: 15 May Shift 2

Company Accounts

>

Share Capital

Easy

It is available only for the creditors on winding up of the company.

Registered capital

Subscribed capital

Capital reserve

Reserve capital

Correct Answer

Option 4

Correct Answer

Explanation

Q8:

2025: 15 May Shift 2

Company Accounts

>

Share Capital

Medium

High Land India Ltd. invited applications for 50,000 Shares of Rs. 100 each per share. Applications were received for 70,000 shares and pro-rata allotment was made on the application for 50,000 shares. Rohan to whom 600 shares were allotted failed to pay the allotment money and his shares were forfeited immediately after allotment. Of the shares forfeited, 500 share were reissued as fully paid-up for Rs. 80 per share.

Order to be followed for recording entries will be

(A) Forfeiture of shares

(B) Calculation of amount received on allotment

(C) Adjustment of excess money received on application towards allotment

(D) Reissue of shares

Choose the correct answer from the options given below:

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

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

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

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

Correct Answer

Option 3

Correct Answer

Explanation

Q9:

2025: 15 May Shift 2

Company Accounts

>

Share Capital

Medium

Where there is no articles of association of its own, which of the following provisions applies as per Table A.

A minimum of 15 days' notice is given to the shareholders to pay the amount

calls must be made on a uniform basis on all shares of all class.

A period of one month must elapse between two calls

The amount of call should not exceed 20% of the face value of the share

Correct Answer

Option 3

Correct Answer

Explanation

Q10:

2025: 15 May Shift 2

Company Accounts

>

Share Capital

Easy

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

20%

25%

30%

15%

Correct Answer

Option 2

Correct Answer

Explanation

Q11:

2025: 15 May Shift 2

Company Accounts

>

Share Capital

Medium

Match List-I with List-II

List-I	List-II
(A) Calls in Advance A/c Dr. To Particular Call A/c	(I) For Interest due on Calls in Advance
(B) Interest on Calls in Advance A/c Dr. To Sundry Shareholder's A/c	(II) For Interest Paid on Calls in Advance
(C) Sundry Shareholder's A/c Dr. To Bank A/c	(III) Calls in advance adjusted with the call money due
(D) Bank A/c Dr. To Calls in Arrears A/c To Interest on Calls in Arrears A/c	(IV) Calls in arrears received with interest

Choose the correct answer from the options given below:

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

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

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

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

Correct Answer

Option 3

Correct Answer

Explanation

Q12:

2025: 15 May Shift 2

Company Accounts

>

Share Capital

Medium

Money received against share warrants' is to be disclosed as a separate item under which head/sub-head

Shareholder's fund

Reserves and Surplus

Non-current Liabilities

Notes to accounts

Correct Answer

Option 1

Correct Answer

Explanation

Q13:

2025: 15 May Shift 2

Company Accounts

>

Share Capital

Easy

Zomato Ltd. decided to offer 10% of its issued capital to its employees at a price lower than its market value. The scheme adopted by Zomato Ltd. is

Private placement of shares

Employees Stock Option Plan

Issue of bonus shares

Employers contribution to EPFO

Correct Answer

Option 2

Correct Answer

Explanation

Q14:

2025: 15 May Shift 2

Company Accounts

>

Share Capital

Medium

If the premium amount has not been received, in respect of the shares forfeited, the Securities Premium Reserve Account

will not be mentioned at the time of forfeiture

will be debited at the time of forfeiture

will be credited at the time of forfeiture

will be considered at the time of reissue of shares

Correct Answer

Option 2

Correct Answer

Explanation

Q15:

2025: 15 May Shift 1

Company Accounts

>

Share Capital

Medium

While issuing the share capital for public subscription where there is no articles of association of its own, the following provisions of Table A will apply:

(A) A period of one month must elapse between two calls.

(B) The amount of call should not exceed 25% of the face value of the share.

(C) A minimum of 7 days' notice is given to the shareholders to pay the amount.

(D) Calls must be made on a uniform basis on all shares within the same class.

Choose the correct answer from the options given below:

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

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

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

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

Correct Answer

Option 2

Correct Answer

Explanation

Q16:

2025: 15 May Shift 1

Company Accounts

>

Share Capital

Medium

The director of Priya polymer 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 Monit. The amount of capital reserve will be:

Rs. 4000

Rs. 4500

Rs. 5500

Rs. 5000

Correct Answer

Option 2

Correct Answer

Explanation

Q17:

2025: 15 May Shift 1

Company Accounts

>

Share Capital

Easy

The important steps in the procedure of share issue are :

(A) The company issues the prospectus to the public.

(B) The company has to get minimum subscription within 120 days from the date of the issue of the prospectus.

(C) The prospective investors intending to subscribe the share capital of the company would make an application along with the application money.

(D) Letters of allotment are sent to those whom the shares have been alloted, and letters of regret to those to whom no allotment has been made.

Choose the correct sequence of steps from the options given below:

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

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

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

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

Correct Answer

Option 2

Correct Answer

Explanation

Q18:

2025: 15 May Shift 1

Company Accounts

>

Share Capital

Easy

Minimum subscription is the minimum amount that, in the opinion of directors, must be raised to meet the needs of business operations of the company relating to:

(A) The price of any property purchased, or to be purchased, which has to be met wholly or partly out of the proceeds of issue;

(B) Preliminary expenses payable by the company and any commission payable in connection with the issue of shares;

(C) Working capital;

(D) Any other expenditure required for the usual conduct of business operations

Choose the correct answer from the options given below:

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

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

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

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

Correct Answer

Option 3

Correct Answer

Explanation

Q19:

2025: 15 May Shift 1

Company Accounts

>

Share Capital

Medium

Securities Premium Account can be used only for the following purposes:

(A) To issue partly paid bonus shares to the extent not exceeding unissued share capital of the company;

(B). Buy back of own shares.

(C). To write-off the expenses of, or commission paid, or discount allowed on any securities of the company;

(D). To pay premium on the redemption of preference shares or debentures of the company.

Choose the correct answer from the options given below:

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

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

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

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

Correct Answer

Option 4

Correct Answer

Explanation

Q20:

2025: 15 May Shift 1

Company Accounts

>

Share Capital

Easy

Comprehension:

Read the following passage and answer the questions

On January 1, 2024, the Director of X Ltd. issued for public subscription 50,000 equity shares of Rs. 10 each at Rs. 12 per share payable, Rs. 5 on application (including premium), Rs. 4 on allotment and the balance on call on May 01, 2024. The issue was closed on February 10, 2024 by which date applications for 70,000 shares were received. Of the cash received Rs. 40,000 was returned and Rs. 60,000 was applied to the amount due on allotment, the balance of which was paid on February 16, 2024. All the shareholders paid the call due on May 01, 2024 with the exception of an allottee of 500 shares. These shares were forfeited on September 29, 2024 and reissued as fully paid at Rs. 8 per share on November 01, 2024. The company, as a matter of policy, does not maintain a calls-in-arrears account.

On Reissue of 500 forfeited shares as fully paid at Rs. 8 per share, what amount will be debited to Shares Forfeiture Account?

Rs. 1,000

Rs. 2,000

Rs. 3,000

Rs. 4,000

Correct Answer

Option 1

Correct Answer

Explanation

Q21:

2025: 15 May Shift 1

Company Accounts

>

Share Capital

Easy

Comprehension:

Read the following passage and answer the questions

On January 1, 2024, the Director of X Ltd. issued for public subscription 50,000 equity shares of Rs. 10 each at Rs. 12 per share payable, Rs. 5 on application (including premium), Rs. 4 on allotment and the balance on call on May 01, 2024. The issue was closed on February 10, 2024 by which date applications for 70,000 shares were received. Of the cash received Rs. 40,000 was returned and Rs. 60,000 was applied to the amount due on allotment, the balance of which was paid on February 16, 2024. All the shareholders paid the call due on May 01, 2024 with the exception of an allottee of 500 shares. These shares were forfeited on September 29, 2024 and reissued as fully paid at Rs. 8 per share on November 01, 2024. The company, as a matter of policy, does not maintain a calls-in-arrears account.

What amount will be credited to Equity Share Application Account on February 10, 2024?

Rs. 2,50,000

Rs. 3,00,000

Rs. 3,50,000

Rs. 450000

Correct Answer

Option 3

Correct Answer

Explanation

Q22:

2025: 15 May Shift 1

Company Accounts

>

Share Capital

Easy

Comprehension:

Read the following passage and answer the questions

On January 1, 2024, the Director of X Ltd. issued for public subscription 50,000 equity shares of Rs. 10 each at Rs. 12 per share payable, Rs. 5 on application (including premium), Rs. 4 on allotment and the balance on call on May 01, 2024. The issue was closed on February 10, 2024 by which date applications for 70,000 shares were received. Of the cash received Rs. 40,000 was returned and Rs. 60,000 was applied to the amount due on allotment, the balance of which was paid on February 16, 2024. All the shareholders paid the call due on May 01, 2024 with the exception of an allottee of 500 shares. These shares were forfeited on September 29, 2024 and reissued as fully paid at Rs. 8 per share on November 01, 2024. The company, as a matter of policy, does not maintain a calls-in-arrears account.

What is the amount of excess application money credited to share allotment and money refunded on rejected application in totality?

Rs. 40,000

Rs. 60,000

Rs. 1,00,000

Rs. 1,20,000

Correct Answer

Option 3

Correct Answer

Explanation

Q23:

2025: 15 May Shift 1

Company Accounts

>

Share Capital

Medium

Comprehension:

Read the following passage and answer the questions

On January 1, 2024, the Director of X Ltd. issued for public subscription 50,000 equity shares of Rs. 10 each at Rs. 12 per share payable, Rs. 5 on application (including premium), Rs. 4 on allotment and the balance on call on May 01, 2024. The issue was closed on February 10, 2024 by which date applications for 70,000 shares were received. Of the cash received Rs. 40,000 was returned and Rs. 60,000 was applied to the amount due on allotment, the balance of which was paid on February 16, 2024. All the shareholders paid the call due on May 01, 2024 with the exception of an allottee of 500 shares. These shares were forfeited on September 29, 2024 and reissued as fully paid at Rs. 8 per share on November 01, 2024. The company, as a matter of policy, does not maintain a calls-in-arrears account.

What is the amount of Profit on reissue of Forfeited Shares Accounts transferred to capital reserve?

Rs. 500

Rs. 1000

Rs. 2000

Rs. 2500

Correct Answer

Option 4

Correct Answer

Explanation

Q24:

2025: 15 May Shift 1

Company Accounts

>

Share Capital

Medium

Comprehension:

Read the following passage and answer the questions

On January 1, 2024, the Director of X Ltd. issued for public subscription 50,000 equity shares of Rs. 10 each at Rs. 12 per share payable, Rs. 5 on application (including premium), Rs. 4 on allotment and the balance on call on May 01, 2024. The issue was closed on February 10, 2024 by which date applications for 70,000 shares were received. Of the cash received Rs. 40,000 was returned and Rs. 60,000 was applied to the amount due on allotment, the balance of which was paid on February 16, 2024. All the shareholders paid the call due on May 01, 2024 with the exception of an allottee of 500 shares. These shares were forfeited on September 29, 2024 and reissued as fully paid at Rs. 8 per share on November 01, 2024. The company, as a matter of policy, does not maintain a calls-in-arrears account.

On Forfeiture of 500 shares for non-payment of call money, what amount will be credited to Shares Forfeiture Account?

Rs. 2500

Rs. 3500

Rs. 4500

Rs. 1500

Correct Answer

Option 2

Correct Answer

Explanation

Q25:

2025: 14 May Shift 2

Company Accounts

>

Share Capital

Easy

The Profit on reissue of forfeited shares is transferred to :

General Reserve

Capital Redemption Reserve

Capital Reserve

Reserve Capital

Correct Answer

Option 3

Correct Answer

Explanation

Q26:

2025: 14 May Shift 2

Company Accounts

>

Share Capital

Easy

Hari, the holder of 1200 shares paid the amount due on first call @ Rs 2/- per share along with second and final call which became due after 1 month from the due date of first call. What interest will be charged from Hari on calls in arrears:

Rs 20

Rs 24

Rs 40

Rs 48

Correct Answer

Option 1

Correct Answer

Explanation

Q27:

2025: 14 May Shift 2

Company Accounts

>

Share Capital

Easy

Match List-I with List-II

List-I	List-II
(A) Authorised Capital	(i) It is that part of the subscribed capital which has been called up on the shares.
(B) Issued Capital	(ii) It is that part of the issued capital which has been actually subscribed by the public.
(C) Subscribed Capital	(III) It is that part of the authorised capital which is actually issued to the public for subscription.
(D) Called up Capital	(IV) The amount of share capital which a company is authorised to issue by its Memorandum of Association

Choose the correct answer from the options given below:

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

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

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

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

Correct Answer

Option 1

Correct Answer

Explanation

Q28:

2025: 14 May Shift 2

Company Accounts

>

Share Capital

Medium

Match List-I with List-II

List-I	List-II
(A) For Transfer of Application Money	(I) Share Allotment A/c Dr. To Share Capital A/c
(B) For Money Refunded on Rejected Application	(II) Share Application A/c Dr. To Share Capital A/c
(C) For Amount Due on Allotment	(III) Share Application A/c Dr. To Bank A/c
(D) For Receipt of Allotment Money	(IV) Bank A/c Dr. To Share Allotment A/c

Choose the correct answer from the options given below:

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

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

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

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

Correct Answer

Option 2

Correct Answer

Explanation

Q29:

2025: 14 May Shift 2

Company Accounts

>

Share Capital

Easy

Correct steps in the procedure of issue of shares are-

(A) Allotment of Shares

(B) Calls in Arrears

(C) Issue of Prospectus

(D) Receipt of Applications

Choose the correct answer from the options given below:

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

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

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

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

Correct Answer

Option 1

Correct Answer

Explanation

Q30:

2025: 14 May Shift 2

Company Accounts

>

Share Capital

Easy

Which of the following is not a feature of a Company:

A company is formed according to the provisions of Law enforced from time to time.

A company has a separate legal entity which is distinct and separate from its members.

The liability of the members of the company is limited to the extent of unpaid amount of the shares held by them.

The company being an artificial person, can sign its name by itself.

Correct Answer

Option 4

Correct Answer

Explanation

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