CUET Accountancy - Company Accounts - Share Capital | Free Questions - Page 9

Q1:

2025: 30 May Shift 1

Company Accounts

>

Share Capital

Easy

Common

Match List-I with List-II

List-I	List-II
(A) Under Subscription	(I) Issue of Shares at an amount more than the nominal or par value of shares.
(B) Issue of Shares at a Premium	(II) It 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 so received from the shareholders when shareholders pay a part or the whole of the amount of the calls not yet made.
(D) Calls in Advance	(IV) when applications for more shares of a company are received than the number offered to the public for subscription.

Choose the correct answer from the options given below:

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

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

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

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

Correct Answer

Option 2

Correct Answer

Explanation

Q2:

2025: 30 May Shift 1

Company Accounts

>

Share Capital

Easy

Common

Which is not a type of Preference Shares :-

Participating Preference Shares

Cumulative Preference Shares

Irredeemable Preference Shares

Convertible Preference Shares

Correct Answer

Option 4

Correct Answer

Explanation

Q3:

2025: 30 May Shift 1

Company Accounts

>

Share Capital

Easy

Common

Table F of the Companies Act provides for the payment of interest on calls in advance at a rate not exceeding:

10% per annum.

12% per annum.

11% per annum.

15% per annum.

Correct Answer

Option 2

Correct Answer

Explanation

Q4:

2025: 30 May Shift 1

Company Accounts

>

Share Capital

Easy

Common

Arrange the following in correct sequence :

(A) Paid up Capital

(B) Subscribed Capital

(C) Issued Capital

(D) Authorised Capital

Choose the correct answer from the options given below:

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

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

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

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

Correct Answer

Option 2

Correct Answer

Explanation

Q5:

2025: 30 May Shift 1

Company Accounts

>

Share Capital

Easy

Common

The maximum amount of discount on the re-issue of forfeited shares will be :-

The amount already called up at the time of forfeiture.

The amount of calls in arrear at the time of forfeiture.

The amount of calls in advance at the time of forfeiture.

The amount already received at the time of forfeiture.

Correct Answer

Option 4

Correct Answer

Explanation

Q6:

2025: 30 May Shift 1

Company Accounts

>

Share Capital

Medium

Common

Which among the following statements is NOT true

Share application account is a personal account.

The director of a company must be a shareholder.

Paid up capital can exceed called up capital.

Capital reserves are created from capital profits.

Correct Answer

Option 2,3

Correct Answer

Explanation

Q7:

2025: 30 May Shift 1

Company Accounts

>

Share Capital

Easy

Common

Rahul Limited purchased a 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. What will the number of shares to be issued when shares issued at a premium of 20%?

5,500 shares

5,400 shares

4,400 shares

4,500 shares

Correct Answer

Option 4

Correct Answer

Explanation

Q8:

2025: 30 May Shift 1

Company Accounts

>

Share Capital

Easy

Common

What is the nominal share capital?

The amount actually paid by the shareholders

The maximum amount of share capital which a company is authorised to issue.

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

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

Correct Answer

Option 2

Correct Answer

Explanation

Q9:

2025: 30 May Shift 1

Company Accounts

>

Share Capital

Medium

Common

Arrange the journal entries with regard to first call of shares in the correct sequence:

(A) For Adjustment of Excess Application Money

(B) For Amount Due on Allotment

(C) For Allotment money received.

(D) For Amount Due on call.

Choose the correct answer from the options given below:

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

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

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

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

Correct Answer

Option 2

Correct Answer

Explanation

Q10:

2025: 30 May Shift 1

Company Accounts

>

Share Capital

Easy

Common

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

Unsecured loans

Share capital

Reserves and surpluses

Current liabilities and provisions

Correct Answer

Option 2

Correct Answer

Explanation

Q11:

2025: 29 May Shift 2

Company Accounts

>

Share Capital

Easy

Common

The number of shares to be issued to a vendor for consideration other than cash is calculated as follows:

Amount Payable / Application money

Amount Receivable / Allotment price

Amount Payable / Issue Price

Amount Receivable / Issue Price

Correct Answer

Option 3

Correct Answer

Explanation

Q12:

2025: 29 May Shift 2

Company Accounts

>

Share Capital

Easy

Common

Profit on reissue of shares is transferred to

Security premium account

Statement of profit and loss

General reserve

Capital reserve

Correct Answer

Option 4

Correct Answer

Explanation

Q13:

2025: 29 May Shift 2

Company Accounts

>

Share Capital

Medium

Common

Choose the correct statement :-

Subscribed Share Capital is shown in Balance Sheet, and included in the total with Authorised share capital of the company.

Subscribed Share Capital is shown in Notes to Accounts, and included in the total of Balance Sheet.

Subscribed Share Capital is shown in Balance Sheet, but not included in the total of Balance Sheet.

Subscribed Share Capital is shown in Notes to Accounts, but not included in the total of Balance Sheet.

Correct Answer

Option 2

Correct Answer

Explanation

Q14:

2025: 29 May Shift 2

Company Accounts

>

Share Capital

Easy

Common

When Calls in Advance Account is adjusted _______ is credited and _______ is debited.

Respective call A/c, Calls in Advance A/c

Share Capital A/c, Respective Call A/c

Calls in Advance A/c, Bank A/c

Calls in Advance A/c, Respective Call A/c

Correct Answer

Option 1

Correct Answer

Explanation

Q15:

2025: 29 May Shift 2

Company Accounts

>

Share Capital

Medium

Common

Match List-I with List-II

List-I	List-II
(TYPES OF COMPANY..)	(CHARACTERISTICS..)
(A) unlimited company.	(I) liability arises only in the event of winding up
(B) one person company	(II) limits the number of members to 200.
(C) private company	(III) paid up capital is not more than 50 lakhs.
(D) company limited by guarantee.	(IV) creditors can claim their dues from the members.

Choose the correct answer from the options given below:

(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

Q16:

2025: 29 May Shift 2

Company Accounts

>

Share Capital

Medium

Common

After forfeiture of share, the amount transferred to capital reserve is

Profit on forfeiture plus loss on reissue of forfeited share.

Amount of securities premium debited on forfeiture.

Profit on forfeiture minus loss on reissue of forfeited share,

Balance of amount not yet called.

Correct Answer

Option 3

Correct Answer

Explanation

Q17:

2025: 29 May Shift 2

Company Accounts

>

Share Capital

Medium

Common

In case of over subscription, the directors may

(A). Accept some applications in full and reject excessive applications.

(B). They can make pro-rata allotment to all.

(C). They can adopt a combination of the above two alternatives.

(D). They can make preferential allotment to some applicants.

Only (A)

Only (A), (B) and (C)

Only (A) and (B)

Only (B)

Correct Answer

Option 2

Correct Answer

Explanation

Q18:

2025: 29 May Shift 2

Company Accounts

>

Share Capital

Easy

Common

In a Journal Entry of Forfeiture of Shares, Share Capital Account will be :-

Debited by the issue price of the number of the shares forfeited.

Debited by the face value of the number of the shares forfeited.

Debited by the called up value of the number of the shares forfeited.

Credited by the issue price of the number of the shares forfeited.

Correct Answer

Option 3

Correct Answer

Explanation

Q19:

2025: 29 May Shift 2

Company Accounts

>

Share Capital

Medium

Common

The account which is not used in journal entry of the forfeiture of shares is:

Share capital account.

Capital reserve account.

Securities premium account.

Calls in arrears account.

Correct Answer

Option 2

Correct Answer

Explanation

Q20:

2025: 29 May Shift 2

Company Accounts

>

Share Capital

Medium

Common

When there's no Article of Association of its own, the following provision of table A will apply at the time of issue of shares...

period of 3 months must elapse between two calls

a minimum of 21 days notice is given to the shareholders to pay the amount.

a minimum of 14 days notice is given to the shareholders to pay the amount

the amount of call should be more than 25% of the face value of the share.

Correct Answer

Option 3

Correct Answer

Explanation

Q21:

2025: 29 May Shift 2

Company Accounts

>

Share Capital

Medium

Common

In a Journal Entry of Forfeiture of Shares, Securities Premium Account may be debited, when :-

Share are issued at premium and calls in arrears include premium.

Share are issued at premium and calls in arrears do not include premium.

Shares are issued at par and calls in arrears include premium.

Share are issued at par and calls in arrears do not include premium.

Correct Answer

Option 1

Correct Answer

Explanation

Q22:

2025: 29 May Shift 2

Company Accounts

>

Share Capital

Easy

Common

The rate of interest on calls in arrears as per Table F can not exceed.

11%, p.a.

10% p.m.

10% p.a

12% p a.

Correct Answer

Option 3

Correct Answer

Explanation

Q23:

2025: 29 May Shift 2

Company Accounts

>

Share Capital

Medium

Common

A private company is one which.

(A) restricts the right to transfer share..

(B) limits the number of members to 200.

(C) must have at least 2 persons.

(D) inculde a company which is subsidiary of public company.

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 2

Correct Answer

Explanation

Q24:

2025: 27 May Shift 2

Company Accounts

>

Share Capital

Easy

Common

When a company issues shares at a premium, the company can collect Securities Premium along with the :-

Allotment Money

Call Money

Application Money

Any of these

Correct Answer

Option 4

Correct Answer

Explanation

Q25:

2025: 27 May Shift 2

Company Accounts

>

Share Capital

Easy

Common

A company purchase its own shares of Rs 5,00,000 from the market. What this process is called ?

Re-issue of Shares

Buy-back of Shares

Bonus Issue of Shares

Forfeiture of Shares.

Correct Answer

Option 2

Correct Answer

Explanation

Q26:

2025: 27 May Shift 2

Company Accounts

>

Share Capital

Easy

Common

On the basis of the number of members, companies can be divided into:

(A) Unlimited Company

(B) Public Company

(C) Private Company

(D) One Person Company (OPC)

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

Q27:

2025: 27 May Shift 2

Company Accounts

>

Share Capital

Medium

Common

Arrange the following events (in relation to the issue of shares) in a logical 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

Q28:

2025: 27 May Shift 2

Company Accounts

>

Share Capital

Medium

Common

Which of the following statements are correct in relation to the issue of share capital for public subscription?

(A) The application money should be at least 5% of the face value of the share.

(B) Calls are to be made as per the provisions of the articles of association.

(C) Where there is no articles of association of its own, the provisions of Table A will apply.

(D) Calls need not be made on a uniform basis on all shares within the same class.

Choose the correct answer from the options given below:

(A), (B) and (C) only

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

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

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

Correct Answer

Option 1

Correct Answer

Explanation

Q29:

2025: 27 May Shift 2

Company Accounts

>

Share Capital

Medium

Common

In the Journal Entry of forfeiture of shares issued at a premium, the Share Capital Account is :-

Debited with the called up amount (including premium)

Debited with the face value amount (including premium)

Debited with the face value amount (excluding premium)

Debited with the called up amount (excluding premium)

Correct Answer

Option 4

Correct Answer

Explanation

Q30:

2025: 27 May Shift 2

Company Accounts

>

Share Capital

Easy

Common

Shares can be forfeited:

For failure to attend meetings

For failure to repay the loan to the bank

For which shares are pledged as a security

For non-payment of call money

Correct Answer

Option 4

Correct Answer

Explanation

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