CUET Accountancy - Company Accounts - Share Capital | Free Questions - Page 14

Q1:

2023: 20 June Shift 2

Company Accounts

>

Share Capital

Medium

Arrange the following in the context of "Buy Back of Shares".

A. Articles of Association must authorise Buy Back of share

B. Buy Back should be completed within 12 months

C. Maintaining debt equity ratio of not more than 2:1 after Buy Back

D. Passing Special Resolution in annual general meeting

E. Filing solvency declaration with registrar and SEBI

Choose the correct answer from the options given below:

A, D, C, B, E

B, C, D, E, A

C, D, E, A, B

D, E, B, C, A

Correct Answer

Option 1

Correct Answer

Explanation

Q2:

2023: 20 June Shift 2

Company Accounts

>

Share Capital

Easy

Securities premium cannot be used:

for issuing fully paid Bonus shares

to write-off preliminary expenses of the company

to pay premium on redemption of shares or debentures of company

to pay dividend to the shareholder of company

Correct Answer

Option 4

Correct Answer

Explanation

Q3:

2023: 20 June Shift 2

Company Accounts

>

Share Capital

Easy

Balance of Share Forfeiture account is shown in the Balance Sheet under the item:-

Current Liabilities and Provisions

Reserve and Surplus

Share Capital

Unsecured Loans

Correct Answer

Option 3

Correct Answer

Explanation

Q4:

2023: 20 June Shift 2

Company Accounts

>

Share Capital

Easy

When a company reserve a portion of its uncalled capital to be called in the event of winding up, such uncalled capital is known as:-

Reserve capital

Capital Reserve

Called up Capital

Subscribed Capital

Correct Answer

Option 1

Correct Answer

Explanation

Q5:

2023: 20 June Shift 2

Company Accounts

>

Share Capital

Easy

The process of receiving minimum subscription of 90% of the entire issue must be completed within ______ days from date of issue of prospectus

30 days

90 days

120 days

140 days

Correct Answer

Option 3

Correct Answer

Explanation

Q6:

2023: 20 June Shift 2

Company Accounts

>

Share Capital

Easy

Eicher Ltd. issued 50,000 shares of Rs.10 each at a premium of Rs.5 per share payable as follows:

On application Rs.3 per share

On allotment Rs.5 (including Rs.3 Premium)

On First Call Rs.5 (including Rs.2 Premium)

On Final Call Balance amount

Application were received for 72,000 shares. Directors allotted 50,000 shares to the applicants applying for 65,000 shares, the remaining applications being refused. Money overpaid on application was utilised towards sum due on allotment. All the money was duly received with the exception of first call from Rahul, who applied for 2,600 shares. Due to non payment of 1st call his share were forfeited immediately. Later on these share were re-issued at minimum issue price.

On the basis of following case study, answer the question.

Record journal entry for forfeiture of Rahul's shares.

Share Capital A/c Dr 20,000 ---

Securities Premium Reserve A/c Dr 10,000 ---

To Share 1st call A/c 10,000

To Share final call A/c 4,000

To Share forfeiture A/c 16,000

Share Capital A/c Dr 20,000 ---

To Share 1st call A/c 10,000

To Share final call A/c 4,000

To Share forfeiture A/c 6,000

Share Capital A/c Dr 16,000

Securities Premium Reserve A/c Dr 4,000

To Share 1st call A/c 10,000

To Share forfeiture A/c 10,000

Share Capital A/c Dr 16,000

To Calls in Arrears A/c 10,000

To Share forfeiture A/c 6,000

Correct Answer

Option 3

Correct Answer

Explanation

Q7:

2023: 20 June Shift 2

Company Accounts

>

Share Capital

Easy

Eicher Ltd. issued 50,000 shares of Rs.10 each at a premium of Rs.5 per share payable as follows:

On application Rs.3 per share

On allotment Rs.5 (including Rs.3 Premium)

On First Call Rs.5 (including Rs.2 Premium)

On Final Call Balance amount

Application were received for 72,000 shares. Directors allotted 50,000 shares to the applicants applying for 65,000 shares, the remaining applications being refused. Money overpaid on application was utilised towards sum due on allotment. All the money was duly received with the exception of first call from Rahul, who applied for 2,600 shares. Due to non payment of 1st call his share were forfeited immediately. Later on these share were re-issued at minimum issue price.

On the basis of following case study, answer the question.

Identify the amount by which bank account would be debited/credited on refund of rejected applications

Rs.2,16,000 Debit

Rs.21,000 Credit

Rs.2,16,000 Credit

Rs.21,000 Debit

Correct Answer

Option 2

Correct Answer

Explanation

Q8:

2023: 20 June Shift 2

Company Accounts

>

Share Capital

Easy

Eicher Ltd. issued 50,000 shares of Rs.10 each at a premium of Rs.5 per share payable as follows:

On application Rs.3 per share

On allotment Rs.5 (including Rs.3 Premium)

On First Call Rs.5 (including Rs.2 Premium)

On Final Call Balance amount

Application were received for 72,000 shares. Directors allotted 50,000 shares to the applicants applying for 65,000 shares, the remaining applications being refused. Money overpaid on application was utilised towards sum due on allotment. All the money was duly received with the exception of first call from Rahul, who applied for 2,600 shares. Due to non payment of 1st call his share were forfeited immediately. Later on these share were re-issued at minimum issue price.

On the basis of following case study, answer the question.

Determine the amount to be transferred to Capital Reserve on reissue of Rahul's Shares

Rs.7,800

Rs.6,000

Rs.1,800

Nil

Correct Answer

Option 4

Correct Answer

Explanation

Q9:

2023: 20 June Shift 2

Company Accounts

>

Share Capital

Easy

Eicher Ltd. issued 50,000 shares of Rs.10 each at a premium of Rs.5 per share payable as follows:

On application Rs.3 per share

On allotment Rs.5 (including Rs.3 Premium)

On First Call Rs.5 (including Rs.2 Premium)

On Final Call Balance amount

Application were received for 72,000 shares. Directors allotted 50,000 shares to the applicants applying for 65,000 shares, the remaining applications being refused. Money overpaid on application was utilised towards sum due on allotment. All the money was duly received with the exception of first call from Rahul, who applied for 2,600 shares. Due to non payment of 1st call his share were forfeited immediately. Later on these share were re-issued at minimum issue price.

On the basis of following case study, answer the question.

Identify the ratio in which shares are issued on Pro-rata basis.

50:72

72:50

13:10

10:13

Correct Answer

Option 3

Correct Answer

Explanation

Q10:

2023: 20 June Shift 2

Company Accounts

>

Share Capital

Easy

Eicher Ltd. issued 50,000 shares of Rs.10 each at a premium of Rs.5 per share payable as follows:

On application Rs.3 per share

On allotment Rs.5 (including Rs.3 Premium)

On First Call Rs.5 (including Rs.2 Premium)

On Final Call Balance amount

Application were received for 72,000 shares. Directors allotted 50,000 shares to the applicants applying for 65,000 shares, the remaining applications being refused. Money overpaid on application was utilised towards sum due on allotment. All the money was duly received with the exception of first call from Rahul, who applied for 2,600 shares. Due to non payment of 1st call his share were forfeited immediately. Later on these share were re-issued at minimum issue price.

On the basis of following case study, answer the question.

Before forfeiture of Rahul's shares, who are required to issue notice in this regard.

Directors

Promoters

Employees

Members

Correct Answer

Option 1

Correct Answer

Explanation

Q11:

2023: 11 June Shift 3

Company Accounts

>

Share Capital

Medium

Calculate the amount of Dividend paid during the year 2022 from the following information :

Balance of Proposed Dividend as on 31st March, 2021 was Rs. 40,000 and on 31st March, 2022 Rs. 60,000. Interim Dividend was paid @20% on share capital. Share capital was Rs. 4,00,000.

Rs. 1,40,000

Rs. 1,20,000

Rs. 1,40,000

Rs. 1,00,000

Correct Answer

Option 2

Correct Answer

Explanation

Q12:

2023: 11 June Shift 3

Company Accounts

>

Share Capital

Medium

State the correct order of categories of Share Capital as shown in 'Notes to Accounts' of Balance Sheet of a company.

(A) Subscribed and Fully paid up Capital

(B) Issued Capital

(C) Subscribed but not fully paid up Capital

(D) Authorised Capital

(E) Share forfeited Account

Choose the correct answer from the options given below :

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

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

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

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

Correct Answer

Option 1

Correct Answer

Explanation

Q13:

2023: 11 June Shift 3

Company Accounts

>

Share Capital

Easy

Arrange the following steps in correct sequence with regard to Shares of a company.

(A) Making Calls

(B) Forfeiture of Shares

(C) Issue of Prospectus

(D) Calls in Arrears

(E) Reissue of Shares

Choose the correct answer from the options given below :

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

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

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

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

Correct Answer

Option 2

Correct Answer

Explanation

Q14:

2023: 11 June Shift 3

Company Accounts

>

Share Capital

Medium

The paid up share capital of "One Person Company" cannot be more than :

Rs. 50 Lakhs

Rs. 1 crore

Rs. 1.5 crore

Rs. 2 crore

Correct Answer

Option 1

Correct Answer

Explanation

Q15:

2023: 11 June Shift 3

Company Accounts

>

Share Capital

Medium

Match List - I with List - II.

List - I	List - II
(A) Equity Share	(I) Fixed Dividend
(B) Preference Share	(II) No hold over Assets
(C) Secured Loan	(III) Hold over Assets
(D) Unsecured Loan	(IV) Voting Right

Choose the correct answer from the options given below :

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

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

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

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

Correct Answer

Option 3

Correct Answer

Explanation

Q16:

2023: 29 May Shift 2

Company Accounts

>

Share Capital

Medium

A company can buy its own shares when-

The debt - Equity ratio is not more than 1:1 after the buy back.

The amount of buy back shares in any financial year not exceeding 20% of the paid-up capital and free reserves.

Partly paid up shares are considered buy back.

Article of Association must authorise and special resolution has been passed for the buy back of shares.

Correct Answer

Option 4

Correct Answer

Explanation

Q17:

2023: 29 May Shift 2

Company Accounts

>

Share Capital

Medium

When a company issues shares in open market and the amount is payable in instalments. What is the sequence of amount demanded by the company?

A. Money received on calls

B. Money due on calls

C. Allotment money received

D. Application money transferred to Share Capital A/c

E. Allotment money due.

Choose the correct answer from the options given below:

D, C, B, A, E

D, E, C, B, A

D, C, A, B, E

D, E, C, A, B

Correct Answer

Option 2

Correct Answer

Explanation

Q18:

2023: 29 May Shift 2

Company Accounts

>

Share Capital

Hard

Based on following passage answer questions from 41-45.

A Ltd with an Authorised Capital of Rs. 10,00,000 is divided into shares of Rs. 10 each, issued 50,000 shares at a premium of Rs. 2 per share payable as follows

on Application Rs. 3 per share

on Allotment Rs. 5 per share (including premium)

on First and Final call Balance amount

Application were received for 60,000 shares and the directors allotted shares to all on proportionate basis. All money received except first and final call from Hari who had applied for 1200 shares. His shares were forfeited and later half of his forfeited shares were reissued at Rs. 8 per share as fully paid up.

Identify the number of shares with which A ltd is registered.

1,00,000 Shares

50,000 Shares

60,000 Shares

10,00,000 Shares

Correct Answer

Option 1

Correct Answer

Explanation

Q19:

2023: 29 May Shift 2

Company Accounts

>

Share Capital

Hard

Based on following passage answer questions from 41-45.

A Ltd with an Authorised Capital of Rs. 10,00,000 is divided into shares of Rs. 10 each, issued 50,000 shares at a premium of Rs. 2 per share payable as follows

on Application Rs. 3 per share

on Allotment Rs. 5 per share (including premium)

on First and Final call Balance amount

Application were received for 60,000 shares and the directors allotted shares to all on proportionate basis. All money received except first and final call from Hari who had applied for 1200 shares. His shares were forfeited and later half of his forfeited shares were reissued at Rs. 8 per share as fully paid up.

Select the amount received on Share Allotment Account -

Rs. 2,50,000

Rs. 1,50,000

Rs. 2,20,000

Rs. 3,00,000

Correct Answer

Option 3

Correct Answer

Explanation

Q20:

2023: 29 May Shift 2

Company Accounts

>

Share Capital

Hard

Based on following passage answer questions from 41-45.

A Ltd with an Authorised Capital of Rs. 10,00,000 is divided into shares of Rs. 10 each, issued 50,000 shares at a premium of Rs. 2 per share payable as follows

on Application Rs. 3 per share

on Allotment Rs. 5 per share (including premium)

on First and Final call Balance amount

Application were received for 60,000 shares and the directors allotted shares to all on proportionate basis. All money received except first and final call from Hari who had applied for 1200 shares. His shares were forfeited and later half of his forfeited shares were reissued at Rs. 8 per share as fully paid up.

Select the amount that is received from Hari's reissued shares -

Rs. 4,800

Rs. 4,000

Rs. 8,000

Rs. 9,600

Correct Answer

Option 2

Correct Answer

Explanation

Q21:

2023: 29 May Shift 2

Company Accounts

>

Share Capital

Hard

Based on following passage answer questions from 41-45.

A Ltd with an Authorised Capital of Rs. 10,00,000 is divided into shares of Rs. 10 each, issued 50,000 shares at a premium of Rs. 2 per share payable as follows

on Application Rs. 3 per share

on Allotment Rs. 5 per share (including premium)

on First and Final call Balance amount

Application were received for 60,000 shares and the directors allotted shares to all on proportionate basis. All money received except first and final call from Hari who had applied for 1200 shares. His shares were forfeited and later half of his forfeited shares were reissued at Rs. 8 per share as fully paid up.

Identify the account to which the discount allowed on reissue of forfeited shares should be debited.

Bank Account

Forfeited Share Account

Capital Reserve Account

Securities Premium Reserve Account

Correct Answer

Option 2

Correct Answer

Explanation

Q22:

2023: 29 May Shift 2

Company Accounts

>

Share Capital

Hard

Based on following passage answer questions from 41-45.

A Ltd with an Authorised Capital of Rs. 10,00,000 is divided into shares of Rs. 10 each, issued 50,000 shares at a premium of Rs. 2 per share payable as follows

on Application Rs. 3 per share

on Allotment Rs. 5 per share (including premium)

on First and Final call Balance amount

Application were received for 60,000 shares and the directors allotted shares to all on proportionate basis. All money received except first and final call from Hari who had applied for 1200 shares. His shares were forfeited and later half of his forfeited shares were reissued at Rs. 8 per share as fully paid up.

The balance, if any, left in the share forfeited account relating to reissued shares, should be transferred to _______

Forfeited Share Account

Share Capital Account

Reserve Capital Account

Capital Reserve Account

Correct Answer

Option 4

Correct Answer

Explanation

Q23:

2023: 28 May Shift 1

Company Accounts

>

Share Capital

Easy

Under which Sub head we show the Security Premium in Balance Sheet ?

Reserve and Surplus

Share Capital

Equity Share Capital

Shares and Liabilities

Correct Answer

Option 1

Correct Answer

Explanation

Q24:

2023: 28 May Shift 1

Company Accounts

>

Share Capital

Easy

Find the correct sequence of procedure of issue of shares :

(A) Receipt of Applications

(B) Issue of prospectus

(C) Allotment of Shares

(D) Making call money due

(E) Receiving Call money

Choose the correct answer from the options given below :

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

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

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

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

Correct Answer

Option 2

Correct Answer

Explanation

Q25:

2023: 28 May Shift 1

Company Accounts

>

Share Capital

Easy

Match List - I with List - II.

List - I	List - II
(A) Over Subscription	(I) Minimum amount that must be raised by issue of shares
(B) Minimum subscription	(II) Application received is more than shares issued
(C) Under Subscription	(III) Allotment of shares without issue of prospectus
(D) Private Placement	(IV) Application received is less than shares issued

Choose the correct answer from the options given below :

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

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

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

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

Correct Answer

Option 2

Correct Answer

Explanation

Q26:

2023: 28 May Shift 1

Company Accounts

>

Share Capital

Easy

Match List - I with List - II.

List - I	List - II
(A) Authorised Capital	(I) A portion of uncalled share capital will be called at the time of winding up
(B) Reserve Capital	(II) Maximum amount of share capital a company could raise during its life time
(C) Issued Capital	(III) Capital issued to public for subscription
(D) Subscribed but not fully paid capital	(IV) Amount called up and received but not fully

Choose the correct answer from the options given below :

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

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

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

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

Correct Answer

Option 1

Correct Answer

Explanation

Q27:

2023: 28 May Shift 1

Company Accounts

>

Share Capital

Medium

Match List - I with List - II.

List - I	List - II
(A) Application money should be at least ____% of the face value of the share	(I) 25%
(B) The amount of Call should not exceed ____% of the face value of the share	(II) 90%
(C) Minimum subscription of capital cannot be less than ____ of the issued amount according to SEBI guidelines	(III) 10%
(D) Interest charged on call-in-arrears is @ ______ p.a.	(IV) 5%

Choose the correct answer from the options given below :

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

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

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

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

Correct Answer

Option 1

Correct Answer

Explanation

Q28:

2022: 30 Aug Shift 2

Company Accounts

>

Share Capital

Easy

What is the correct sequence of allotment of shares

A. Allotment money received

B. Inviting applications from investors

C. Allotment Due

D. Application money Received

E. Share Call Money Due

Choose the correct answer from the options given below :

E, C, A, B, D

A, B, C, D, E

B, D, C, A, E

C, A, E, D, B

Correct Answer

Option 3

Correct Answer

Explanation

Q29:

2022: 30 Aug Shift 2

Company Accounts

>

Share Capital

Medium

What is the correct sequence of types of capital in company's Balance sheet while preparing notes to accounts.

A. Issued Capital

B. Subscribed and fully paid up capital

C. Share forfeited Balance

D. Authorised Capital

E. Subscribed but not fully paid up capital

Choose the correct answer from the options given below:

C, B, D, E, A

D, A, B, E, C

A, B, C, D, E

B, A, D, E, C

Correct Answer

Option 2

Correct Answer

Explanation

Q30:

2022: 30 Aug Shift 2

Company Accounts

>

Share Capital

Medium

Securities premium Reserve can be utilised ___

A. to return excess money received on application

B. to write off preliminary expenses

C. to issue partly paid bonus shares

D. for premium paid on Redemption of Debentures or preference shares

E. for buy back of shares

Choose the correct answer from the options given below:

A, B, C only

B, C, E only

C, D, E only

B, D, E only

Correct Answer

Option 4

Correct Answer

Explanation

CUET Accountancy: Company AccountsShare Capital. Free, no login required.

Q1:

Q2:

Q3:

Q4:

Q5:

Q6:

Q7:

Q8:

Q9:

Q10:

Q11:

Q12:

Q13:

Q14:

Q15:

Q16:

Q17:

Q18:

Q19:

Q20:

Q21:

Q22:

Q23:

Q24:

Q25:

Q26:

Q27:

Q28:

Q29:

Q30:

CUET Accountancy Past Year Questions (Topic-Wise)