CUET Accountancy - Company Accounts - Share Capital | Free Questions - Page 7

Q1:

2025: 4 June Shift 2

Company Accounts

>

Share Capital

Easy

Common

Shares can be forfeited:

for failure to repay the loan to the bank

for failure to attend meetings

for non-payment of call money

for issue of shares for consideration other than cash

Correct Answer

Option 3

Correct Answer

Explanation

Q2:

2025: 3 June Shift 2

Company Accounts

>

Share Capital

Easy

Common

Match List-I with List-II

List-I	List-II
(A) Calls in Arrears	(I) This is the case when applications for more shares of a company are received than the number offered to the public for subscription.
(B) Calls in Advance	(II) This is a situation where the number of shares applied for is less than the number for which applications have been invited for subscription.
(C) Over Subscription	(III) The amount due that shareholders fail to pay on allotment or on any of the calls.
(D) Under Subscription	(IV) The amount sometimes received from the shareholders as a part or the whole of the amount of the calls not yet made.

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

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

Correct Answer

Option 4

Correct Answer

Explanation

Q3:

2025: 3 June Shift 2

Company Accounts

>

Share Capital

Medium

Common

Match List-I with List-II

List-I	List-II
(A) Companies Limited by Shares	(I) When the company's property is not sufficient to pay off its debts, the private property of its members can be used for the purpose.
(B) Companies Limited by Guarantee	(II) Restricts the right to transfer its shares
(C) Unlimited Companies	(III) If a member has paid the full amount of the shares, there is no liability on his part whatsoever for the debts of the company.
(D) Private Company	(IV) The liability of its members is limited to the amount they undertake to contribute in the event of the company being wound up.

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

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

Correct Answer

Option 4

Correct Answer

Explanation

Q4:

2025: 3 June Shift 2

Company Accounts

>

Share Capital

Easy

Common

What will be the journal entries when a call is due and the amount of the same is received?

For Call Amount Due

Share Call A/c Dr.

To Share Call A/c

(Call money due on __Shares @ Rs. ___ per share)

For Receipt of Call Amount

Bank A/c Dr.

To Share Capital A/c

(Call money received)

For Call Amount Due

Share Call A/c Dr.

To Share Capital A/c

(Call money due on __Shares @ Rs. ___ per share)

For Receipt of Call Amount

Bank A/c Dr.

To Share Call A/c

(Call money received)

For Call Amount Due

Bank A/c Dr.

To Share Capital A/c

(Call money due on __Shares @ Rs. ___ per share)

For Receipt of Call Amount

Share Call A/c Dr.

To Share Call A/c

(Call money received)

For Call Amount Due

Share Capital A/c Dr.

To Share Call A/c

(Call money received)

For Receipt of Call Amount

Bank A/c Dr.

To Share Call A/c

(Call money due on __Shares @ Rs. ___ per share)

Correct Answer

Option 2

Correct Answer

Explanation

Q5:

2025: 3 June Shift 2

Company Accounts

>

Share Capital

Easy

Common

There must be an interval of how many months between the making of two calls unless otherwise provided by the articles of association of the company.

15 days

Atleast three months

Atleast two months

Atleast one month

Correct Answer

Option 4

Correct Answer

Explanation

Q6:

2025: 3 June Shift 2

Company Accounts

>

Share Capital

Medium

Common

When the directors opt to make a proportionate allotment to all applicants, the excess application money received is normally adjusted towards the amount due on allotment. In case, the excess application money received is more than the amount due on allotment of shares, such excess amount may either be:

Adjusted towards the amount due on the allotment of shares allotted

Refunded or credited to calls in advance.

Refunded money in full

Refunded or credited to Calls in Arrears

Correct Answer

Option 2

Correct Answer

Explanation

Q7:

2025: 3 June Shift 2

Company Accounts

>

Share Capital

Medium

Common

Identify the type of Share Capital, which is clearly shown in Notes to Accounts, but not included in the total of Notes to Account under SHARE CAPITAL head

Subscribed and fully paid up Share Capital

Subscribed but not fully paid up Share Capital

Issued Share Capital and Un-issued Share Capital

Registered Share Capital and Issued Share Capital

Correct Answer

Option 4

Correct Answer

Explanation

Q8:

2025: 3 June Shift 2

Company Accounts

>

Share Capital

Easy

Common

The balance of the share forfeiture account is shown in the balance sheet under the item:

Current liabilities and provisions

Reserves and surpluses

Share capital

Unsecured loan

Correct Answer

Option 3

Correct Answer

Explanation

Q9:

2025: 3 June Shift 2

Company Accounts

>

Share Capital

Easy

Common

The profit on the reissue of forfeited shares is transferred to

General Reserve

Capital redemption reserve

Capital reserve

Preference shares

Correct Answer

Option 3

Correct Answer

Explanation

Q10:

2025: 3 June Shift 2

Company Accounts

>

Share Capital

Easy

Common

Arrange the following in order with respect to the issue of shares

(A) Application received

(B) Issue of prospectus

(C) Forfeiture of shares

(D) Allotment of Shares

(E) Reissue of forfeited shares

Choose the correct answer from the options given below:

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

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

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

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

Correct Answer

Option 3

Correct Answer

Explanation

Q11:

2025: 3 June Shift 1

Company Accounts

>

Share Capital

Easy

Common

Which of the following statements are true with reference to a company?

(A) The directors of the company are the owners of the company.

(B) A company is an artificial person.

(C) A company has its common seal.

(D) The liability of the members of the company is limited to the extent of shares held by them

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

Q12:

2025: 3 June Shift 1

Company Accounts

>

Share Capital

Medium

Common

Match List-I with List-II

List–I	List–II
(A) Calls in Arrears	(I) Shares are taken back by the company as shareholders failed to pay one or more installments, viz. allotment money and/or call money.
(B) Calls in Advance	(II) This is a situation where the number of shares applied for is less than the number for which applications have been invited for subscription.
(C) Forfeiture of Shares	(III) This is the amount which any shareholder fails to pay on allotment or on any of the calls.
(D) Under Subscription	(IV) Table 'F' of the Companies Act provides for the payment of interest on this call at a rate not exceeding 12% per annum.

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

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

Correct Answer

Option 4

Correct Answer

Explanation

Q13:

2025: 3 June Shift 1

Company Accounts

>

Share Capital

Easy

Common

Arrange the following steps in the procedure of share issues in the correct sequence:

(A) Receipt of Applications

(B) Allotment of Shares

(C) Issue of Prospectus

(D) Listing on the stock exchange

Choose the correct answer from the options given below:

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

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

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

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

Correct Answer

Option 2

Correct Answer

Explanation

Q14:

2025: 3 June Shift 1

Company Accounts

>

Share Capital

Easy

Common

Identify the true statement in respect of Reserve Capital :-

It is a portion of uncalled share capital and can be called only in the event of winding up of a company.

It is a portion of uncalled share capital and can be called at any time during the lifetime of a company.

It is a portion of un-paid share capital and can be called only in the event of winding up of a company.

It is a portion of un-subscribed share capital and can be called at any time during the lifetime of a company.

Correct Answer

Option 1

Correct Answer

Explanation

Q15:

2025: 3 June Shift 1

Company Accounts

>

Share Capital

Medium

Common

From an accounting point of view, arrange the following share capital of the company in the correct sequence:

(A) Subscribed Capital

(B) Authorized Capital

(C) Called up Capital

(D) Issued Capital

Choose the correct answer from the options given below:

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

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

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

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

Correct Answer

Option 2

Correct Answer

Explanation

Q16:

2025: 3 June Shift 1

Company Accounts

>

Share Capital

Easy

Common

Nominal share capital is :

That part of the authorised capital which is issued by the company.

The 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

Q17:

2025: 3 June Shift 1

Company Accounts

>

Share Capital

Easy

Common

Match List-I with List-II

List–I	List–II
(A) Authorized capital	(I) Mentioned in Prospectus.
(B) Issued capital.	(II) Mentioned in Memorandum of Association.
(C) Subscribed capital.	(III) called up capital–calls in arrears.
(D) Paid up capital.	(IV) Capital for which application is received.

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

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

Correct Answer

Option 3

Correct Answer

Explanation

Q18:

2025: 3 June Shift 1

Company Accounts

>

Share Capital

Easy

Common

R Ltd purchased a building from X Infra for Rs 6,00,000 and the payment is to be made by the issue of shares for Rs 100 each at a premium of 20%. Calculate the number of shares to be issued.

5000 shares

6000 shares

10000 shares

600000 shares

Correct Answer

Option 1

Correct Answer

Explanation

Q19:

2025: 3 June Shift 1

Company Accounts

>

Share Capital

Medium

Common

Identify which of the following will be shown in Notes to Accounts under SHARE CAPITAL head :-

Authorised Share Capital and Un-issued Share Capital.

Un-issued Share Capital and Un-called up Share Capital.

Authorised Share Capital and Un-called up Share Capital.

Authorized Share Capital and Issued Share Capital.

Correct Answer

Option 4

Correct Answer

Explanation

Q20:

2025: 3 June Shift 1

Company Accounts

>

Share Capital

Medium

Common

Amount of discount allowed on the reissue of forfeited shares cannot exceed the amount that has:-

not been called-up on forfeited shares at the time of initial issue.

been called-up on forfeited shares at the time of initial issue.

not been received on forfeited shares at the time of initial issue.

been received on forfeited shares at the time of initial issue.

Correct Answer

Option 4

Correct Answer

Explanation

Q21:

2025: 3 June Shift 1

Company Accounts

>

Share Capital

Medium

Common

Match List-I with List-II

List-I	List-II
(A) For the amount of calls received in advance	(I) Calls in Advance A/c Dr. To Particular Call A/c
(B) Interest on Calls in Advance is due	(II) Sundry Shareholder's A/c Dr. To Bank A/c
(C) The amount of 'Calls in Advance' is adjusted	(III) Bank A/c Dr. To Calls in Advance A/c
(D) Interest on Calls in Advance, For Interest Paid	(IV) Interest on Calls in Advance A/c Dr. To Sundry Shareholder's A/c

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

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

Correct Answer

Option 4

Correct Answer

Explanation

Q22:

2025: 3 June Shift 1

Company Accounts

>

Share Capital

Easy

Common

Interest on calls in arrears is charged according to "Table F" at :

10%

12%

14.5%

11%

Correct Answer

Option 1

Correct Answer

Explanation

Q23:

2025: 3 June Shift 1

Company Accounts

>

Share Capital

Easy

Common

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

Q24:

2025: 2 June Shift 2

Company Accounts

>

Share Capital

Easy

Common

Calls in arrears are shown in the balance sheet as.

Current assets.

A deduction from the paid up capital.

Current liability.

Reserve and surplus.

Correct Answer

Option 2

Correct Answer

Explanation

Q25:

2025: 2 June Shift 2

Company Accounts

>

Share Capital

Easy

Common

Match List-I with List-II

List-I	List-II
(A) Authorized capital.	(I) Mentioned in Prospectus.
(B) Issued capital.	(II) Mentioned In Memorandum Of Association.
(C) Subscribed capital.	(III) called up capital-calls in arrears.
(D) Paid up capital.	(IV) Capital for which application is received.

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

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

Correct Answer

Option 3

Correct Answer

Explanation

Q26:

2025: 2 June Shift 2

Company Accounts

>

Share Capital

Easy

Common

R Ltd purchased a building from X Infra for Rs 6,00,000 and the payment is to be made by the issue of shares for Rs 100 each at a premium of 20%. Calculate the number of shares to be issued.

5000 shares

6000 shares

10000 shares

60000 shares

Correct Answer

Option 1

Correct Answer

Explanation

Q27:

2025: 2 June Shift 2

Company Accounts

>

Share Capital

Medium

Common

A share of Rs.10. Issued at a premium of Rs.3. On which Rs.3 was payable on application and Rs.5 was payable on allotment including premium. A shareholder who had applied for 100 shares was Allotted Only 50 Shares and due to non payment of allotment his shares were forfeited. In this case the amount to be debited to securities premium A/c on forfeiture of these shares are

Rs.250.

Rs.50.

Rs.100.

Rs.150.

Correct Answer

Option 3

Correct Answer

Explanation

Q28:

2025: 2 June Shift 2

Company Accounts

>

Share Capital

Easy

Common

In what condition the amount is shown under the head of 'Subscribed and Fully Paid up Share Capital' in Balance Sheet of a Company-

If shares are fully called up and there are Calls in Arrears

If shares are fully called up and there are no Calls in Arrears

If shares are partly called up and there are no Calls in Arrears

If shares are partly called up and there are Calls in Arrears

Correct Answer

Option 2

Correct Answer

Explanation

Q29:

2025: 2 June Shift 2

Company Accounts

>

Share Capital

Medium

Common

A share of Rs. 10 on which Rs.8 was called up was forfeited for non-payment of Rs.5. This share can be reissued at a minimum price of Rs.

10

8

11

7

Correct Answer

Option 4

Correct Answer

Explanation

Q30:

2025: 2 June Shift 2

Company Accounts

>

Share Capital

Medium

Common

Arrange the following events in proper order.

(A) Transfer to capital reserve.

(B) Forfeiture of share.

(C) Calls in arrears.

(D) Re issue of share.

Choose the correct answer from the options given below:

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

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

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

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

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)