CUET Accountancy - Company Accounts - Share Capital | Free Questions - Page 13

Q1:

2025: 14 May Shift 2

Company Accounts

>

Share Capital

Easy

Which of the following is called Registered capital of a company?

Subscribed capital

Issued Capital

Nominal Capital

Reserve capital

Correct Answer

Option 3

Correct Answer

Explanation

Q2:

2025: 14 May Shift 2

Company Accounts

>

Share Capital

Easy

Jain and Co. purchased a machine from Young Life Machine Limited for Rs. 3,80,000. As per the purchase agreement, Rs. 20,000 were paid in cash and balance by issue of shares of Rs. 100 each. How many shares are issued if the shares are issued at 20% premium.

3,600 shares

3,200 shares

3,000 shares

3,800 shares

Correct Answer

Option 3

Correct Answer

Explanation

Q3:

2025: 14 May Shift 1

Company Accounts

>

Share Capital

Easy

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:

6% p.a

8% p.a

10% p.a

12% p.a

Correct Answer

Option 3

Correct Answer

Explanation

Q4:

2025: 14 May Shift 1

Company Accounts

>

Share Capital

Medium

Match List-I with List-II

List-I	List-II
(A) Issued Capital	(I) It is that part of the issued capital which has been actually subscribed by the public.
(B) Uncalled Capital	(II) Capital which can be called only in the event of winding up of the company.
(C) Reserve Capital	(III) That portion of the subscribed capital which has not yet been called up.
(D) Subscribed Capital	(IV) It is that part of the authorised capital which is actually issued to the public for subscription

Choose the correct answer from the options given below:

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

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

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

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

Correct Answer

Option 3

Correct Answer

Explanation

Q5:

2025: 14 May Shift 1

Company Accounts

>

Share Capital

Medium

Arrange the following capitals in correct sequence as they appears in notes to account-

(A) Subscribed and Not Fully paid-up

(B) Subscribed and Fully paid-up

(C) Issued Capital

(D) Nominal Capital

Choose the correct answer from the options given below:

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

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

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

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

Correct Answer

Option 1

Correct Answer

Explanation

Q6:

2025: 14 May Shift 1

Company Accounts

>

Share Capital

Easy

Shares can be forfeited :

for non-payment of call money

for failure to attend meetings

for failure to repay the loan to the bank

for which shares are pledged as a security

Correct Answer

Option 1

Correct Answer

Explanation

Q7:

2025: 14 May Shift 1

Company Accounts

>

Share Capital

Easy

Rahul Limited purchased building from Handa Limited for Rs.5,40,000 and the payment is to be made by the issue of shares of Rs.100 each. The number of shares to be issued at premium of 20% is:

5,400 shares

4,500 shares

6,000 shares

5,200 shares

Correct Answer

Option 2

Correct Answer

Explanation

Q8:

2025: 14 May Shift 1

Company Accounts

>

Share Capital

Easy

Steps for Forfeiture of Shares-

(A) Issue of Prospectus

(B) Shares Forfeiture

(C) Receipt of Application

(D) Allotment of Shares

Choose the correct answer from the options given below:

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

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

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

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

Correct Answer

Option 1

Correct Answer

Explanation

Q9:

2025: 14 May Shift 1

Company Accounts

>

Share Capital

Hard

High Light India Ltd. invited applications for 30,000 Shares of Rs. 100 each at a premium of Rs. 20 per share payable as follows:

On Application Rs. 40 (including Rs.10 premium)

On Allotment Rs. 30 (including Rs.10 premium)

On First Call Rs. 30

On Second and Final Call Rs. 20

Applications were received for 40,000 shares and pro-rata allotment was made on the application for 35,000 share. Excess application money was utilised towards allotment.

Rohan to whom 600 shares were allotted failed to pay the allotment money and his shares were forfeited immediately after allotment.

Aman who applied for 1,050 shares failed to pay first call and his share were forfeited immediately after first Call.

Second and final call was made. All the money due on second call have been received.

Of the shares forfeited, 1,000 share were reissued as fully paid-up for Rs. 80 per share, which included the whole of Aman's shares.

Amount recieved on allotment:

Rs. 6,00,000

Rs. 6,50,000

Rs. 6,86,000

Rs. 7,00,000

Correct Answer

Option 3

Correct Answer

Explanation

Q10:

2025: 14 May Shift 1

Company Accounts

>

Share Capital

Easy

High Light India Ltd. invited applications for 30,000 Shares of Rs. 100 each at a premium of Rs. 20 per share payable as follows:

On Application Rs. 40 (including Rs.10 premium)

On Allotment Rs. 30 (including Rs.10 premium)

On First Call Rs. 30

On Second and Final Call Rs. 20

Applications were received for 40,000 shares and pro-rata allotment was made on the application for 35,000 share. Excess application money was utilised towards allotment.

Rohan to whom 600 shares were allotted failed to pay the allotment money and his shares were forfeited immediately after allotment.

Aman who applied for 1,050 shares failed to pay first call and his share were forfeited immediately after first Call.

Second and final call was made. All the money due on second call have been received.

Of the shares forfeited, 1,000 share were reissued as fully paid-up for Rs. 80 per share, which included the whole of Aman's shares.

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

650 Shares

750 Shares

700 Shares

800 Shares

Correct Answer

Option 3

Correct Answer

Explanation

Q11:

2025: 14 May Shift 1

Company Accounts

>

Share Capital

Medium

High Light India Ltd. invited applications for 30,000 Shares of Rs. 100 each at a premium of Rs. 20 per share payable as follows:

On Application Rs. 40 (including Rs.10 premium)

On Allotment Rs. 30 (including Rs.10 premium)

On First Call Rs. 30

On Second and Final Call Rs. 20

Applications were received for 40,000 shares and pro-rata allotment was made on the application for 35,000 share. Excess application money was utilised towards allotment.

Rohan to whom 600 shares were allotted failed to pay the allotment money and his shares were forfeited immediately after allotment.

Aman who applied for 1,050 shares failed to pay first call and his share were forfeited immediately after first Call.

Second and final call was made. All the money due on second call have been received.

Of the shares forfeited, 1,000 share were reissued as fully paid-up for Rs. 80 per share, which included the whole of Aman's shares.

Money received on First Call is

Rs. 9,00,000

Rs. 8,82,000

Rs. 8,75,000

Rs. 8,55,000

Correct Answer

Option 4

Correct Answer

Explanation

Q12:

2025: 14 May Shift 1

Company Accounts

>

Share Capital

Easy

High Light India Ltd. invited applications for 30,000 Shares of Rs. 100 each at a premium of Rs. 20 per share payable as follows:

On Application Rs. 40 (including Rs.10 premium)

On Allotment Rs. 30 (including Rs.10 premium)

On First Call Rs. 30

On Second and Final Call Rs. 20

Applications were received for 40,000 shares and pro-rata allotment was made on the application for 35,000 share. Excess application money was utilised towards allotment.

Rohan to whom 600 shares were allotted failed to pay the allotment money and his shares were forfeited immediately after allotment.

Aman who applied for 1,050 shares failed to pay first call and his share were forfeited immediately after first Call.

Second and final call was made. All the money due on second call have been received.

Of the shares forfeited, 1,000 share were reissued as fully paid-up for Rs. 80 per share, which included the whole of Aman's shares.

Choose journal entries in the books of High Light India Ltd on receiving Application money :

Bank A/c Dr. 16,00000 To Share Application A/c 16,00000

Bank A/c Dr. 14,00000 To Share Application A/c 14,00000

Bank A/c Dr. 12,00000 To Share Application A/c 12,00000

Bank A/c Dr. 20,00000 To Share Application A/c 20,00000

Correct Answer

Option 1

Correct Answer

Explanation

Q13:

2025: 14 May Shift 1

Company Accounts

>

Share Capital

Medium

High Light India Ltd. invited applications for 30,000 Shares of Rs. 100 each at a premium of Rs. 20 per share payable as follows:

On Application Rs. 40 (including Rs.10 premium)

On Allotment Rs. 30 (including Rs.10 premium)

On First Call Rs. 30

On Second and Final Call Rs. 20

Applications were received for 40,000 shares and pro-rata allotment was made on the application for 35,000 share. Excess application money was utilised towards allotment.

Rohan to whom 600 shares were allotted failed to pay the allotment money and his shares were forfeited immediately after allotment.

Aman who applied for 1,050 shares failed to pay first call and his share were forfeited immediately after first Call.

Second and final call was made. All the money due on second call have been received.

Of the shares forfeited, 1,000 share were reissued as fully paid-up for Rs. 80 per share, which included the whole of Aman's shares.

Allotment money received in advanced alongwith application is _______________

Rs. 1,00,000

Rs. 2,00,000

Rs. 3,00,000

Rs. 4,00,000

Correct Answer

Option 2

Correct Answer

Explanation

Q14:

2025: 13 May Shift 2

Company Accounts

>

Share Capital

Easy

Arrange in correct sequence-

(A) Share Allotment

(B) Share Application

(C) Share forfeiture

(D) Share Call

Choose the correct answer from the options given below:

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

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

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

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

Correct Answer

Option 3

Correct Answer

Explanation

Q15:

2025: 13 May Shift 2

Company Accounts

>

Share Capital

Medium

Which statements are correct-

(A) A company's shares are generally transferable.

(B) Shareholders of a company are liable for the acts of the company.

(C) The director of a company must be a shareholder.

(D) Paid up capital can exceed called up capital.

Choose the correct answer from the options given below:

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

(A) and (C) only

(A) and (D) only

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

Correct Answer

Drop

Correct Answer

Explanation

Q16:

2025: 13 May Shift 2

Company Accounts

>

Share Capital

Easy

Match List-I with List-II

List-I	List-II
(A) Reserve Capital	(I) That portion of the subscribed capital which has not yet been called up.
(B) Uncalled Capital	(II) It is that part of the issued capital which has been actually subscribed by the public.
(C) Paid up Capital	(III) A company may reserve a portion of its uncalled capital to be called only in the event of winding up of the company.
(D) Subscribed Capital	(IV) It is that portion of the called up capital which has been actually received from the shareholders.

Choose the correct answer from the options given below:

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

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

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

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

Correct Answer

Option 2

Correct Answer

Explanation

Q17:

2025: 13 May Shift 1

Company Accounts

>

Share Capital

Easy

Shares can be forfeited:

for non-payment of call money

for failure to attend meetings

for failure to repay the loan to the bank

for which shares are pledged as security

Correct Answer

Option 1

Correct Answer

Explanation

Q18:

2025: 13 May Shift 1

Company Accounts

>

Share Capital

Easy

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:

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

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

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

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

Correct Answer

Option 3

Correct Answer

Explanation

Q19:

2025: 13 May Shift 1

Company Accounts

>

Share Capital

Medium

Which of the following statements are correct?

(A) A company is an artificial person.

(B) Company's shares are generally transferable.

(C) Paid up capital can exceed called up capital.

(D) The part of capital which is called up only on winding up is called reserve capital.

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 1

Correct Answer

Explanation

Q20:

2025: 13 May Shift 1

Company Accounts

>

Share Capital

Easy

Nominal share capital is-

that part of authorised share capital which is issued by the company.

that amount of capital which is actually applied for by the prospective shareholders.

the maximum amount of share capital which a company is authorized to issue.

the amount actually paid by the shareholders.

Correct Answer

Option 3

Correct Answer

Explanation

Q21:

2025: 13 May Shift 1

Company Accounts

>

Share Capital

Easy

Which of the following is not the characteristics of company-

Separate legal entity

Common Seal

Unlimited liability

perpetual succession

Correct Answer

Option 3

Correct Answer

Explanation

Q22:

2025: 13 May Shift 1

Company Accounts

>

Share Capital

Easy

Arrange steps for the issue of shares-

(A) Allotment of shares

(B) Issue of Prospectus

(C) Share first call

(D) Receipt of Applications

Choose the correct answer from the options given below:

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

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

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

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

Correct Answer

Option 1

Correct Answer

Explanation

Q23:

2025: 13 May Shift 1

Company Accounts

>

Share Capital

Easy

Which section of the Company's Act defines/describes Equity and Preference Shares?

Section 40

Section 41

Section 42

Section 43

Correct Answer

Option 4

Correct Answer

Explanation

Q24:

2024

Company Accounts

>

Share Capital

Easy

List-I	List-II
(A) Share capital	(I) Will be called at the time of winding up
(B) Reserves and surplus	(II) Calls in advance
(C) Reserve capital	(III) Subscribed but not fully paid
(D) Current liabilities	(IV) Sinking fund

Match List-I with List-II

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

(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 4

Correct Answer

Explanation

Q25:

2024

Company Accounts

>

Share Capital

Easy

Oversubscription is a situation where the

number of shares applied for is equal to the number of shares issued

number of shares applied for is more than the number of shares issued

number of shares applied for is less than the number of shares issued

face value of the share is less than the issue price of the share

Correct Answer

Option 2

Correct Answer

Explanation

Q26:

2024

Company Accounts

>

Share Capital

Medium

400 shares of ₹ 50 each issued at par were forfeited for non-payment of final call of ₹ 10 per share. These shares were reissued at ₹ 45 per share as fully paid-up. The amount transferred to capital reserve is:

₹ 15,000

₹ 14,000

₹ 16,000

₹ 13,000

Correct Answer

Option 2

Correct Answer

Explanation

Q27:

2024

Company Accounts

>

Share Capital

Medium

List-I (Name of account to be debited or credited, when shares are forfeited)	List-II (Amount to be debited or credited)
(A) Share Capital Account	(I) Debited with amount not received
(B) Share Forfeited Account	(II) Credited with amount not received
(C) Calls-in-arrears Account	(III) Credited with amount received towards share capital
(D) Securities Premium Account	(IV) Debited with amount called up

Match List-I with List-II

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

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

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

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

Correct Answer

Option 2

Correct Answer

Explanation

Q28:

2024

Company Accounts

>

Share Capital

Hard

If a delay occurs beyond 8 days in refunding the subscription amount, failing to gather the minimum subscription, from the date of closure of the subscription list, the company shall be liable for interest at the rate of:

15%

12%

6%

Prevailing in State Bank of India

Correct Answer

Option 1

Correct Answer

Explanation

Q29:

2024

Company Accounts

>

Share Capital

Easy

A company can accept calls in advance, if authorised by:

Shareholders

Board of Directors

Articles of Association

Memorandum of Association

Correct Answer

Option 3

Correct Answer

Explanation

Q30:

2024

Company Accounts

>

Share Capital

Easy

(A) Subscribed Capital
(B) Issued Capital
(C) Authorised Capital
(D) Paid-up Capital
(E) Called-up Capital

Arrange the following in the correct order:

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

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

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

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

Correct Answer

Option 3

Correct Answer

Explanation

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