CUET Accountancy - Company Accounts - Share Capital | Free Questions - Page 16

Q1:

2022: 8 Aug Shift 2

Company Accounts

>

Share Capital

Medium

When shares are forfeited, capital account is debited by:

forfeited amount

called up amount of shares

nominal value of shares

paid-up amount of shares

Correct Answer

Option 2

Correct Answer

Explanation

Q2:

2022: 8 Aug Shift 2

Company Accounts

>

Share Capital

Medium

Premium on issue of shares can be used for:

issue of bonus shares

distribution of profits

transferring to general reserve

none of the above

Correct Answer

Option 1

Correct Answer

Explanation

Q3:

2022: 20 July Shift 1

Company Accounts

>

Share Capital

Medium

Identify the statement that is/are not true from the following.

(a) Shares can be forfeited for non payment of call money.

(b) The profit on forfieted shares is transferred to capital reserve.

(c) Balance of share forfeiture account is shown is the balance sheet under reserves and surplus.

(d) Application money should be at least 10% of the face value of the share.

Choose the correct answer from the options given below :

(a) only

(c) only

(c), (d) only

(b), (d) only

Correct Answer

Option 3

Correct Answer

Explanation

Q4:

2022: 20 July Shift 1

Company Accounts

>

Share Capital

Medium

PQR Ltd. issued 40,000 Equity shares of Rs. 10 each at par payable Rs. 3 on application, Rs. 4 on allotment and balance on first and final call. Applications were received for 1,10,000 shares. Applications for 20,000 shares were refused and allotment was made prorata to remaining applicants. Amount received on allotment is :

Rs. 1,00,000

Nil

Rs. 10,000

Rs. 80,000

Correct Answer

Option 3

Correct Answer

Explanation

Q5:

2022: 20 July Shift 1

Company Accounts

>

Share Capital

Easy

Arrange the following steps as per the procedure of issue of shares :

(a) Receipt of applications

(b) Allotment of shares

(c) Reissue of forfeited shares

(d) Issue of prospectus

(e) Forfeiture of shares

Choose the correct answer from the options given below :

(a), (b), (c), (d), (e)

(b), (a), (d), (c), (e)

(d), (a), (b), (e), (c)

(a), (b), (e), (d), (c)

Correct Answer

Option 3

Correct Answer

Explanation

Q6:

2022: 20 July Shift 1

Company Accounts

>

Share Capital

Medium

Match List - I with List - II

List - I	List - II
(a) The portion of authorised capital of a company which can be called during winding up	(i) Other current liabilities
(b) Excess of share forfeited amount over the loss on reissue	(ii) Reserve Capital
(c) Calls-in-advance is shown in Balance sheet under the head __	(iii) Capital Reserve
(d) Equity shares cannot be issued to public at __	(iv) Discount

Choose the correct answer from the options given below :

(a) - (i), (b) - (ii), (c) - (iii), (d) - (iv)

(a) - (ii), (b) - (iv), (c) - (iii), (d) - (i)

(a) - (ii), (b) - (iii), (c) - (i), (d) - (iv)

(a) - (iii), (b) - (i), (c) - (iv), (d) - (ii)

Correct Answer

Option 3

Correct Answer

Explanation

Q7:

2022: 20 July Shift 1

Company Accounts

>

Share Capital

Medium

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 :

Rs. 3,000

Rs. 800

Rs. 1,200

Rs. 1,000

Correct Answer

Option 2

Correct Answer

Explanation

Q8:

2022: 20 July Shift 1

Company Accounts

>

Share Capital

Easy

If a share of Rs. 100 on which Rs. 45 has been paid is forfeited at what minimum price can it be reissued :

Rs. 75

Rs. 45

Rs. 55

Rs. 100

Correct Answer

Option 3

Correct Answer

Explanation

Q9:

2022: 16 July Shift 2

Company Accounts

>

Share Capital

Easy

Identify the correct sequence of steps in the process of Issue of Shares:

A. Making allotment of shares

B. Issue of Prospectus

C. Forfeiture of shares

D. Receiving applications for shares

E. Making calls

Choose the correct answer from the options given below:

B - A - D - E - C

D - B - A - E - C

B - D - A - E - C

D - B - E - A - C

Correct Answer

Option 3

Correct Answer

Explanation

Q10:

2022: 16 July Shift 2

Company Accounts

>

Share Capital

Medium

Securities Premium Reserve can be used to:

A. Issue new shares to existing shareholders

B. Write off Preliminary expenses

C. Writing off of Goodwill

D. Premium on Redemption of debentures

E. Issue fully paid Bonus Shares

Choose the correct answer from the options given below:

A, B, C only

B, D, E Only

A, C, D only

B, C, E only

Correct Answer

Option 2

Correct Answer

Explanation

Q11:

2022: 16 July Shift 2

Company Accounts

>

Share Capital

Easy

When the purchase consideration is more than net assets taken over, the difference will be debited to

Security Premium Reserve A/c

Capital Reserve A/c

Goodwill A/c

Discount on issue of Debentures A/c

Correct Answer

Option 3

Correct Answer

Explanation

Q12:

2022: 16 July Shift 2

Company Accounts

>

Share Capital

Medium

Moonrise Co. authorised with Share Capital of Rs.5,00,000 issued 10,000 equity shares of Rs.12 each.

Money was payable as

Rs.4 on Application

Rs.4 on Allotment (including premium)

Rs.4 on 1st and final call.

Applications were received for 12,000 shares and the directors decided to make pro-rata allotment. Mr. Rashidi an applicant for 120 shares, could not pay allotment and call money and Mr. Shantanu a holder of 200 shares failed to pay the call. All these shares were forfeited. Out of these forfeited shares, 150 shares (whole of Rashidi) were issued at Rs.8 per share answer following questions on the basis of above, answer from question.

The Balance Sheet of the company will show authorised capital of the company as _______ .

50,000 shares @ Rs.10 each

50,000 shares @ Rs.12 each

1,00,000 shares @ Rs.12 each

10,000 shares of 10 Rs. each

Correct Answer

Option 1

Correct Answer

Explanation

Q13:

2022: 16 July Shift 2

Company Accounts

>

Share Capital

Medium

Moonrise Co. authorised with Share Capital of Rs.5,00,000 issued 10,000 equity shares of Rs.12 each.

Money was payable as

Rs.4 on Application

Rs.4 on Allotment (including premium)

Rs.4 on 1st and final call.

Applications were received for 12,000 shares and the directors decided to make pro-rata allotment. Mr. Rashidi an applicant for 120 shares, could not pay allotment and call money and Mr. Shantanu a holder of 200 shares failed to pay the call. All these shares were forfeited. Out of these forfeited shares, 150 shares (whole of Rashidi) were issued at Rs.8 per share answer following questions on the basis of above, answer from question.

Amount of Securities Premium Reserve to be debited at the time of forfeiture of shares will be

Rs.240

Rs.200

Rs.100

Rs.300

Correct Answer

Option 2

Correct Answer

Explanation

Q14:

2022: 16 July Shift 2

Company Accounts

>

Share Capital

Medium

Moonrise Co. authorised with Share Capital of Rs.5,00,000 issued 10,000 equity shares of Rs.12 each.

Money was payable as

Rs.4 on Application

Rs.4 on Allotment (including premium)

Rs.4 on 1st and final call.

Applications were received for 12,000 shares and the directors decided to make pro-rata allotment. Mr. Rashidi an applicant for 120 shares, could not pay allotment and call money and Mr. Shantanu a holder of 200 shares failed to pay the call. All these shares were forfeited. Out of these forfeited shares, 150 shares (whole of Rashidi) were issued at Rs.8 per share answer following questions on the basis of above, answer from question.

Amount of Security Premium Reserve credited at the time of allotment of Shares will be

Rs.10,000

Rs.20,000

Rs.18,000

Rs.19,200

Correct Answer

Option 2

Correct Answer

Explanation

Q15:

2022: 16 July Shift 2

Company Accounts

>

Share Capital

Medium

Moonrise Co. authorised with Share Capital of Rs.5,00,000 issued 10,000 equity shares of Rs.12 each.

Money was payable as

Rs.4 on Application

Rs.4 on Allotment (including premium)

Rs.4 on 1st and final call.

Applications were received for 12,000 shares and the directors decided to make pro-rata allotment. Mr. Rashidi an applicant for 120 shares, could not pay allotment and call money and Mr. Shantanu a holder of 200 shares failed to pay the call. All these shares were forfeited. Out of these forfeited shares, 150 shares (whole of Rashidi) were issued at Rs.8 per share answer following questions on the basis of above, answer from question.

Amount transferred to Capital Reserve will be

Rs.480

Rs.660

Rs.300

Rs.1,200

Correct Answer

Option 1

Correct Answer

Explanation

Q16:

2022: 16 July Shift 2

Company Accounts

>

Share Capital

Medium

Moonrise Co. authorised with Share Capital of Rs.5,00,000 issued 10,000 equity shares of Rs.12 each.

Money was payable as

Rs.4 on Application

Rs.4 on Allotment (including premium)

Rs.4 on 1st and final call.

Applications were received for 12,000 shares and the directors decided to make pro-rata allotment. Mr. Rashidi an applicant for 120 shares, could not pay allotment and call money and Mr. Shantanu a holder of 200 shares failed to pay the call. All these shares were forfeited. Out of these forfeited shares, 150 shares (whole of Rashidi) were issued at Rs.8 per share answer following questions on the basis of above, answer from question.

The shares are reissued at

discount of Rs.4 per share

discount of Rs.2 per share

premium of Rs.2

shares are reissued at Par.

Correct Answer

Option 2

Correct Answer

Explanation

Q17:

2022: 15 July Shift 2

Company Accounts

>

Share Capital

Easy

Hero Ltd, started a new venture of making casual shirts. The directors decided to issue 5,000,00 shares of Rs. 10 each at Rs. 12 each. The following assets were purchased by the company

A building of Rs. 10 lakhs

Furniture of Rs. 7 lakhs

Machinery of Rs. 2 lakhs

The company purchased cloth of Rs. 20 lakhs and paid wages Rs. 5,00,000 to the workers. The Directors also decided to buy 10,000 shares of TATA Ltd. of Rs. 10 each and at the end of the year Tata Ltd. Paid Rs. 10,000 as dividend

Security Premium Reserve can be used by Hero Ltd. for

Buying raw material

Buying Fixed assets

Issuing fully Paid Bonus shares

Making investment in other companies

Correct Answer

Option 3

Correct Answer

Explanation

Q18:

2022: 15 July Shift 2

Company Accounts

>

Share Capital

Hard

Mona Ltd. has Rs. 5 crores capital divided into equity shares of Rs. 10 each. It decided to setup a new plant in Bihar. For this purpose the company issued 10,000 shares of Rs. 10 each at Rs. 11 per share. The money was payable as follows

Rs. 3 on application

Rs. 4 on allotment - (including premium)

Rs. 4 on first and final call

Applications were received for 12000 shares & the directors made pro-rata allotment Mr. Sharma an applicant for 120 shares could not pay the allotment and call money and Mr. Verma, a holder of 200 shares, failed to pay the call money. All these shares were forfeited out of the forfeited shares, 150 shares (the whole of Mr. Sharma's shares being included) were issued at Rs. 8 per share. Answer the following questions:-

The amount received on allotment was

Rs. 36,000

Rs. 30,000

Rs. 40,000

Rs. 33,660

Correct Answer

Option 4

Correct Answer

Explanation

Q19:

2022: 15 July Shift 2

Company Accounts

>

Share Capital

Hard

Mona Ltd. has Rs. 5 crores capital divided into equity shares of Rs. 10 each. It decided to setup a new plant in Bihar. For this purpose the company issued 10,000 shares of Rs. 10 each at Rs. 11 per share. The money was payable as follows

Rs. 3 on application

Rs. 4 on allotment - (including premium)

Rs. 4 on first and final call

Applications were received for 12000 shares & the directors made pro-rata allotment Mr. Sharma an applicant for 120 shares could not pay the allotment and call money and Mr. Verma, a holder of 200 shares, failed to pay the call money. All these shares were forfeited out of the forfeited shares, 150 shares (the whole of Mr. Sharma's shares being included) were issued at Rs. 8 per share. Answer the following questions:-

The amount transferred to Capital Reserve would be

Rs. 260

Rs. 300

Rs. 360

Rs. 900

Correct Answer

Option 3

Correct Answer

Explanation

Q20:

2022: 15 July Shift 2

Company Accounts

>

Share Capital

Medium

Mona Ltd. has Rs. 5 crores capital divided into equity shares of Rs. 10 each. It decided to setup a new plant in Bihar. For this purpose the company issued 10,000 shares of Rs. 10 each at Rs. 11 per share. The money was payable as follows

Rs. 3 on application

Rs. 4 on allotment - (including premium)

Rs. 4 on first and final call

Applications were received for 12000 shares & the directors made pro-rata allotment Mr. Sharma an applicant for 120 shares could not pay the allotment and call money and Mr. Verma, a holder of 200 shares, failed to pay the call money. All these shares were forfeited out of the forfeited shares, 150 shares (the whole of Mr. Sharma's shares being included) were issued at Rs. 8 per share. Answer the following questions:-

The amount received on First and Final call is

Rs. 38,800

Rs. 40,000

Rs. 12,000

Rs. 33,600

Correct Answer

Option 1

Correct Answer

Explanation

Q21:

2022: 15 July Shift 2

Company Accounts

>

Share Capital

Hard

Mona Ltd. has Rs. 5 crores capital divided into equity shares of Rs. 10 each. It decided to setup a new plant in Bihar. For this purpose the company issued 10,000 shares of Rs. 10 each at Rs. 11 per share. The money was payable as follows

Rs. 3 on application

Rs. 4 on allotment - (including premium)

Rs. 4 on first and final call

Applications were received for 12000 shares & the directors made pro-rata allotment Mr. Sharma an applicant for 120 shares could not pay the allotment and call money and Mr. Verma, a holder of 200 shares, failed to pay the call money. All these shares were forfeited out of the forfeited shares, 150 shares (the whole of Mr. Sharma's shares being included) were issued at Rs. 8 per share. Answer the following questions:-

The amount of forfeiture left over after reissue will be

Rs. 900

Rs. 360

Rs. 300

Rs. 1560

Correct Answer

Option 1

Correct Answer

Explanation

Q22:

2022: 15 July Shift 2

Company Accounts

>

Share Capital

Hard

Mona Ltd. has Rs. 5 crores capital divided into equity shares of Rs. 10 each. It decided to setup a new plant in Bihar. For this purpose the company issued 10,000 shares of Rs. 10 each at Rs. 11 per share. The money was payable as follows

Rs. 3 on application

Rs. 4 on allotment - (including premium)

Rs. 4 on first and final call

Applications were received for 12000 shares & the directors made pro-rata allotment Mr. Sharma an applicant for 120 shares could not pay the allotment and call money and Mr. Verma, a holder of 200 shares, failed to pay the call money. All these shares were forfeited out of the forfeited shares, 150 shares (the whole of Mr. Sharma's shares being included) were issued at Rs. 8 per share. Answer the following questions:-

At the time of forfeiture security premium reserve a/c will be debited for _______ shares.

120 shares

200 shares

150 shares

100 shares

Correct Answer

Option 4

Correct Answer

Explanation

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