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

In case of company limited by shares,

Arrange following important steps being used in the procedure of share issue:

A. Receipt of Applications

B. Allotment of shares

C. Issue of Prospectus

D. Receipt of Minimum subscription

Choose the correct answer from the options given below:

Discount allowed on the reissue of forfeited shares is

Antra Ltd. invited applications for 30,000 Shares of Rs. 100 each at a premium of Rs. 30 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. 30 (including Rs.10 premium). Applications were received for 35,000 shares and a pro rata allotment was made. Excess application money was utilized towards the sum due on allotment. Vijaya to whom 60 shares were allotted, failed to pay the allotment money and his shares were forfeited immediately after allotment.

Allotment money not received on Vijaya's shares will be:

Applications Supported by Blocked Amount (ASBA) is a process developed by.......................to apply for subscribing to IPOs and Rights Issue etc. of securities.

A private company is one which by its articles of association:

A. Limits the number of its members to 200 (excluding its employees);

B. Limits the number of its members to 200 (including its employees);

C. Restricts the right to transfer its shares;

D. Must have at least 2 persons, except in case of one person company;

Choose the correct answer from the options given below:

____________is available only for the creditors on winding up of the company

Match the LIST-I with LIST-II

Choose the correct answer from the options given below:

A company having only a natural person as an Indian citizen and resident in India and cannot carry out non-banking financial investment activities. Its paid-up share capital is not more than Rs. 50 lakhs. Its average annual turnover of three years does not exceed Rs. 2 crores. Which type of company is this?

Match the LIST-I with LIST-II

Choose the correct answer from the options given below:

Kishna Ltd. issued 15,000 shares of Rs.100 each at a premium of Rs.10 per share, payable as follows:

On application Rs.30

On allotment Rs.50 [including premium]

On first and final call Rs.30

The company received 20,000 applications and a pro rata allotment was made to all. Any excess amount received on application is adjusted towards allotment and all the money due on allotment is received except Mr. Shyam who failed to pay allotment money on his 150 allotted shares. Calculate the amount received on allotment.

150 shares of Mr. Ram of Rs.10 each issued at a premium of Rs.4 per share payable with allotment were forfeited for non-payment of allotment money of Rs.8 per share including premium. The first and final call of Rs.4 per share was not made. The forfeited shares were reissued at Rs.15 per share fully paid-up. Calculate the amount transferred to capital reserve.

As 'Calls in Advance' is a liability of the company, it is under obligation, if provided by the Articles, to pay interest on that amount from the date of its receipt up to the date when the appropriate call is due for payment. According to "Table F", interest on calls in advance cannot exceed __________.

The balance of Share Forfeiture account is shown as an addition to the total paid-up capital of the company. Under which head and title of the Balance Sheet it will be shown, until the forfeited shares are reissued?

A. 'Share Capital' under the title "Liabilities and Equity"

B. 'Reserve and Surplus' under the title "Liabilities and Equity"

C. 'Shareholders' Funds' under the title of "Equity and Liabilities"

D. 'Share Capital' under the title 'Equity and Liabilities'

Choose the correct answer from the options given below:

Which of the following is true in relation to a company and the issue of shares ?

A. A company is an artificial person with separate legal entity, perpetual succession and a common seal.

B. Share calls are to be made as per the provisions of the articles of association.

C. Minimum subscription of 75% is must for issue of shares.

D. The procedure for accounting for the issue of both equity and preference shares is the same. To differentiate between the two, the words 'Equity' and 'Preference' is prefixed to each and every instalment.

Choose the correct answer from the options given below:

The issued capital of the company cannot be more than __________ capital.

Arrange the following steps in order of occurrence in share capital accounting treatment

A. Allotment of shares

B. Forfeiture of shares

C. Share forfeited amount transferred to capital reserve

D. Minimum subscription received

Choose the correct answer from the options given below:

If an equity share of Rs. 20 on which Rs. 18 is called-up and Rs. 10 is paid, is forfeited. What will be the equity share capital account amount in the forfeiture journal entry ?

Discount allowed on reissue of forfeited shares should be debited to:

When journal entry for forfeiture of shares is recorded in the Company's Accounts Books, the Share Capital Account -

Which of the following is incorrect about the minimum subscription:

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:

Ashoka Limited Company, which had issued equity shares of Rs.20 each at a premium of Rs. 4 per share, forfeited 1,000 shares for non-payment of final call of Rs.2 per share. 400 of the forfeited shares were reissued at Rs.14 per share out of the remaining shares of 200 shares reissued at Rs.20 per share. Balance of Share Forfeiture Account after reissue of shares will be:

Preference Shares are defined under section ________ of the Companies Act, 2013.

Profit on reissue of forfeited shares should be treated as:

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:

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

The Profit on reissue of forfeited shares is transferred to:

Shares except ESOP can be issued:

(A) at Premium

(B) at Par

(C) for other than cash

Choose the correct answer from the options given below:

200 shares of Rs. 100 each issued at a premium of Rs.10 were forfeited for the non-payment of allotment money of Rs. 60 (including premium) per share. The first and final call of Rs. 20 per share on these shares were not made. The forfeited shares were reissued at Rs. 70 per share as fully paid-up. Capital reserve created after reissue will be:

Which of the following is not a feature of a company?