Going through the Accounting for Issue of Shares – Corporate and Management Accounting CS Executive MCQ Questions with Answers you can quickly revise the concepts.
Accounting for Issue of Shares – Corporate and Management Accounting MCQs
Question 1.
Which of the following section of the Companies Act, 2013 prohibits to issue of shares at discount?
(A) Section 53
(B) Section 54
(C) Section 55
(D) Section 56
Answer:
(A) Section 53
Question 2.
Equity shareholder is -…….
(A) Entitled to dividend at a fixed rate
(B) Not entitled to dividend at a fixed rate
(C) Entitled to dividend prior to payment of dividend to preference shareholder
(D) All of above
Answer:
(B) Not entitled to dividend at a fixed rate
Question 3
……….. have the right to vote on any resolution placed before the company or general meeting.
(A) Preference shareholder
(B) Equity shareholders
(C) Debenture holder
(D) All of above
Answer:
(B) Equity shareholders
Question 4.
Amount of capital stated in the Memorandum of Association as the share capital of the company is known as -……..
(1) Subscribed or Authorized Capital
(2) Paid-up or Subscribed Capital
(3) Nominal or Called-up Capital
(4) Nominal or Authorized Capital
The correct answer is -….
(A) (3)
(B) (1)
(C) (2)
(D) (4)
Answer:
(D) (4)
Question 5.
…….. refers to that part of the authorized capital which has actually been offered to the public for subscription.
(A) Called up capital
(B) Subscribed capital
(C) Issued capital
(D) Nominal or authorized capital
Answer:
(C) Issued capital
Question 6
…………. refers to that part of the issued capital which has actually been subscribed by the public.
(A) Called up capital
(B) Subscribed capital
(C) Issued capital
(D) Nominal or authorized capital
Answer:
(B) Subscribed capital
Question 7.
Public companies issue shares to public through document called -………….
(A) Letter of offer & acceptance
(B) Offer for sale & acceptance
(C) Prospectus
(D) None of above
Answer:
(C) Prospectus
Question 8.
……… means the appropriation of a certain number of shares to an applicant who has applied shares in public issue by the board of directors in consultation with stock exchange.
(A) Allotment
(B) Application
(C) Acceptance
(D) Final call
Answer:
(A) Allotment
Question 9.
Issuer company cannot make allotment of shares unless –
(A) There is over subscription
(B) Minimum subscription has been subscribed
(C) Promoter has subscribed
(D) All of above
Answer:
(B) Minimum subscription has been subscribed
Question 10.
The minimum subscription is the of the issued amount.
(A) 50%
(B) 80%
(C) 75%
(D) 90%
Answer:
(D) 90%
Question 11.
When face value of shares is less than issue price then shares are said to be issued at -……………
(A) Discount
(B) Premium
(C) Par
(D) None of above
Answer:
(B) Premium
Question 12.
When shares are issued at a price less than the face value, they are said to be issued at -…………….
(A) Discount
(B) Premium
(C) Par
(D) None of above
Answer:
(A) Discount
Question 13.
As per the Companies Act, 2013 the companies cannot use the balance of securities premium for –
(A) Premium on redemption of debentures
(B) Issuing bonus shares
(C) Writing off commission on issue of shares or debentures
(D) Loss on issue of debentures
Answer:
(D) Loss on issue of debentures
Question 14.
When shares are not payable in a lump sum, second installment is called -……………..
(A) Application Money
(B) Allotment Money
(C) First Call Money
(D) Final Call Money
Answer:
(B) Allotment Money
Question 15.
When shares are not payable in a lump sum, third installment is called -………………..
(A) Application Money
(B) Allotment Money
(C) First Call Money
(D) Final Call Money
Answer:
(C) First Call Money
Question 16.
Premium on issue of shares must be treated as -………….
(A) Revenue Receipt
(B) Deferred Revenue Receipt
(C) Capital Receipt
(D) Capital Loss
Answer:
(C) Capital Receipt
Question 17.
Premium on issue of shares must be credited to a separate account called -…………..
(A) Share Premium Account
(B) Securities Premium Account
(C) Discount on Issue of Shares
(D) Securities Profit Account
Answer:
(B) Securities Premium Account
Question 18.
Securities premium account must be shown separately on the liabilities side of the balance sheet in …….. under the heading
(A) Share Capital; Shareholders Funds
(B) Reserves & Surplus; Shareholders Funds
(C) Secured Loan; Reserves & Surplus
(D) Unsecured Loan; Profit or Loss
Answer:
(B) Reserves & Surplus; Shareholders Funds
Question 19.
Which of the following type of security can be issued at discounters per Companies Act, 2013₹
(1) Equity Shares
(2) Sweat Equity Shares
(3) Preference Shares
(4) Debentures
(5) Bonds
Select the correct answer from the options given below –
(A) (1) & (3) only
(B) (1), (3) & (4) only
(C) (2), (4) & (5) only
(D) (3), (4) & (5) only
Answer:
(C) (2), (4) & (5) only
Question 20.
Which of the following Table of Schedule I to the Companies Act, 2013 contains the provisions relating to Calls- in-Advance & Calls-in-Arrears………..
(A) Table F
(B) Table A
(C) Table C
(D) Table G
Answer:
(A) Table F
Question 21.
Amount received as calls-in-advance is a ………… of the company.
(A) right
(B) asset
(C) debt
(D) revenue
Answer:
(C) debt
Question 22.
Amount due on calls made but not paid is known as -…………
(A) Calls-in-Advance
(B) Calls-in-Arrear
(C) Unpaid amounts
(D) Defaulting amounts
Answer:
(B) Calls-in-Arrear
Question 23.
If the number of shares issued for is more than the number of shares applied the shares are said to be -……
(A) Oversubscribed
(B) Undersubscribed
(C) Minimum subscription
(D) None of above
Answer:
(B) Undersubscribed
Question 24.
If the number of shares applied for is more than the number of shares issued the shares are said to be –
(A) Oversubscribed
(B) Undersubscribed
(C) Minimum subscription
(D) None of above
Answer:
(A) Oversubscribed
Question 25.
In case of oversubscription of shares each applicant receives the shares in some proportion, it is known as –
(A) Bonus allotment
(B) Right allotment
(C) Per applicant allotment
(D) Pro-rata allotment
Answer:
(D) Pro-rata allotment
Question 26.
If authorized by the …………. company may receive from a shareholder the amount remaining unpaid on shares, even though the amount has not been called up which is known as calls-in-advance.
(A) Memorandum of Association (MOA)
(B) Articles of Association (AOA)
(C) Prospectus
(D) Securities Exchange Board of India
Answer:
(B) Articles of Association (AOA)
Question 27.
…………… paid on calls-in-advance.
(A) Share of company’s profit can be
(B) Dividend can be
(C) No dividend is
(D) None of above
Answer:
(C) No dividend is
Question 28.
As per Table F of Schedule I of the Companies Act, 2013, interest on calls in advance can be paid at p.a. ……..
(A) 8%
(B) 1096
(C) 1296
(D) 1596
Answer:
(C) 1296
Question 29.
As per Table F of Schedule I to the Companies Act, 2013, interest on calls in arrear can be received at p.a.
(A) 1096
(B) 1296
(C) 1596
(D) 896
Answer:
(A) 1096
Question 30.
Interest on calls-in-advance is paid for the period from the -…….
(A) Date of receipt of application money to the date of appropriation
(B) Date of receipt of allotment money to the date of appropriation
(C) Date of receipt of calls-in-advance to the date of appropriation of the call
(D) Date of appropriation to the date of dividend payment
Answer:
(C) Date of receipt of calls-in-advance to the date of appropriation of the call
Question 31.
Balance of interest on calls-in-arrear account is transferred to …………. at the end of the year.
(A) Share capital account
(B) Calls in advance account
(C) Securities premium account
(D) Profit & loss account
Answer:
(D) Profit & loss account
Question 32.
Balance of interest on calls-on-advance account is transferred to the ………… at the end of the year.
(A) Share capital account
(B) Calls in advance account
(C) Securities premium account
(D) Profit & loss account
Answer:
(D) Profit & loss account
Question 33.
A company may allot fully paid shares to promoters or any other party for the services rendered by them, share capital account is credited and debited.
(A) Preliminary expenses account
(B) Goodwill account
(C) Capital reserve account
(D) Suspense account
Answer:
(B) Goodwill account
Question 34.
………… may be said to be the compulsory termination of membership by way of penalty for non-payment of allotment and/or any call money.
(A) Surrender of shares
(B) Forfeiture of shares
(C) Transfer of shares
(D) Transmission of shares
Answer:
(B) Forfeiture of shares
Question 35.
Which of the following security can be forfeited for non-payment of allotment or call money
(I) Equity Shares
(II) Equity Shares, Preference Shares
(III) Preference Shares, Equity Shares & Debentures
(IV) Debentures
Select the correct answer from the options given below –
(A) (I) only
(B) (III) only
(C) (I) & (IV) only
(D) (II) only
Answer:
(D) (II) only
Question 36.
Which of the following security cannot be forfeited for non-payment of allotment or call money
(A) Equity shares
(B) Preference shares
(C) Debentures
(D) Both (A) & (B)
Answer:
(C) Debentures
Question 37.
Shares forfeited account is to be shown in the balance sheet by way of to the paid up share capital on the liabilities side until the concerned shares are re-issued.
(A) Addition
(B) Deduction
(C) Both (A) & (B)
(D) Neither (A) nor (B)
Answer:
(A) Addition
Question 38.
The forfeited shares may be re-issued – (I) at par only (D) at par or at premium only (III) at par or at discount only (IV) at par or at premium or at discount The correct answer is-
(A) (II)
(B) (III)
(C) (I)
(D) (IV)
Answer:
(D) (IV)
Question 39.
If a company receives excess application money and the application money equal to shares issued transferred to Share Capital A/ c and application money received on excess shares – some money is adjusted and against allotment and remaining was refunded, then which of the following entry is correct
Answer:
(B)
Question 40.
Balance of share forfeiture account remaining after reissue is transferred to:
(A) Capital Reserve A/c
(B) Securities Premium A/c
(C) Revenue Reserve A/c
(D) Profit & Loss A/c
Answer:
(A) Capital Reserve A/c
Question 41.
If forfeited shares are re-issued at a premium, the amount of such premium should be credited to -…………
(A) Capital Reserve Account
(B) Securities Premium Account
(C) Revenue Reserve Account
(D) Profit & Loss Account
Answer:
(B) Securities Premium Account
Question 42.
Shareholders are the ………… of the company.
(A) Creditors
(B) Owners
(C) Quasi owner
(D) Deemed owner
Answer:
(B) Owners
Question 43.
Dividends are of profits.
(A) Appropriation
(B) Charge
(C) Transfer
(D) None of above
Answer:
(A) Appropriation
Question 44.
Final accounts of companies are prepared according to ………… of the Companies Act, 2013.
(A) Schedule VI
(B) Schedule V
(C) Schedule II
(D) Schedule III
Answer:
(D) Schedule III
Question 45.
The company may allot shares to the vendors for acquiring some assets as payment for purchase consideration, such issue of shares to vendors is known as issue of shares for -………..
(A) Cash
(B) Consideration other than cash
(C) With consideration
(D) Without consideration
Answer:
(B) Consideration other than cash
Question 46.
The balance in capital redemption reserve is available for -………….
(A) Issue of fully paid-up bonus shares
(B) Redemption of preference shares
(C) Redemption of debentures
(D) All of the above
Answer:
(A) Issue of fully paid-up bonus shares
Question 47.
Which of the following false
(A) Loss on re-issue of shares cannot be more than gain on forfeiture of those shares.
(B) Where all the forfeited shares are not issued the Share Forfeiture A/c will show a credit balance equal to gain on forfeiture of shares not yet issued.
(C) When the shares are forfeited, securities premium account is debited with share capital if premium is not received.
(D) Where forfeited shares are issued at premium the amount of such premium is credited to capital reserve account.
Answer:
(D) Where forfeited shares are issued at premium the amount of such premium is credited to capital reserve account.
Question 48.
N Ltd. issued 1,00,000 equity shares of ₹ 10 each to the public at par. Full amount payable at the time of application. Application were received for 1,20,000 shares. Excess application monies were refunded. Amount to be credited to share capital account should be -………
(A) ₹ 12,00,000
(B) ₹ 10,00,000
(C) ₹ 1,20,000
(D) ₹ 1,00,000
Answer:
(B) ₹ 10,00,000
The Share Capital Account will be credited by number of shares issued multiplied by face value.
Thus, 1,00,000 × 10 = 10,00,000.
Question 49.
S Ltd. issued 1,00,000 equity shares of ₹10 each at a premium of ₹ 2 per share to the public. Full amount payable at the time of application. Application were received for 1.20.0 shares. Excess application monies were refunded. Amount to be credited to share capital account should be –
(A) ₹ 12,00,000
(B) ₹ 10,00,000
(C) ₹ 14,40,000
(D) ₹ 10,40,000
Answer:
(B) ₹ 10,00,000
The Share Capital Account will be credited by number of shares issued multiplied by face value. Excess price over face value will be credited to Securities Premium Account.
Question 50.
10,000 equity shares of ₹ 10 each were issued to public at a premium of ₹ 2 per share. Application were received for 12.0 shares. Securities premium account will be credited by -………
(A) ₹ 24,000
(B) ₹ 20,000
(C) ₹ 4,000
(D) ₹ 1,600
Answer:
(B) ₹ 20,000
Amount credited to Securities Premium Account = 10,000 × 2 = 20,000
Question 51.
The subscribed share capital’of S Ltd. is ₹ 80,00,000 of ₹ 100 each. There were no calls in arrear till the final call was made. The final call made was paid on 77,500 shares. The calls in arrear amounted to ₹ 62,500. The final call per share = ?
(A) ₹ 25
(B) ₹ 7.80
(C) ₹ 20
(D) ₹ 62.50
Answer:
(A) ₹ 25
Total shares = \(\frac{80,00,000}{100}\)= 80,000;80,000 – 77,500 = 2,500; = \(\frac{62,500}{2,500}\) = 25
Question 52.
A Ltd. acquired assets worth ₹ 71,25,000 form H Ltd. by issue of shares of ₹ 10 @ premium of ₹ 25%. The number of shares issued to settle the purchase consideration will be -?
(A) 5,70,000 shares
(B) 7,12,500 shares
(C) 84,375 shares
(D) 50,625 shares
Answer:
(A) 5,70,000 shares
No. of shares to be issued = \(=\frac{\text { Purchase Consideration }}{\text { İssue Price }}=\frac{71,25,000}{12.5}\) = 5,70,000 shares
Question 53.
N Ltd. has allotted 10,000 shares to the applicants of 14,000 shares on pro-rata basis. The amount payable on application is ₹ 2. Ram applied for 420 shares. The number of shares allotted and amount carried forward for adjustment against allotment ?
(A) 300 shares; ₹ 240
(B) 60 shares; ₹ 160
(C) 340 shares; ₹ 160
(D) 320 shares; ₹ 240
Answer:
(A) 300 shares; ₹ 240
No. of shares allotted = \(\frac{10,000}{14,000}\) × 420 = 3,000 shares
Application money paid = 420 × 2 = 8,400.
Application money transferred to capital = 300 × 2 = 600
Excess application money adjusted for allotment = 840 – 600 = 240
Question 54.
Following information pertains to X Ltd. Called-up share capital = ₹ 5,00,000 Calls-in-arrear = ₹ 40,000 Calls-in-advance = ₹ 25,000 Proposed dividend =15%. The amount of dividend payable is
(A) ₹ 75,000
(B) ₹ 72,750
(C) ₹ 71,250
(D) ₹ 69,000
Answer:
(D) ₹ 69,000
Dividend is not payable on Call-in-Advance. Dividend is payable on paid-up capital (i.e. Called-up capital minus Call-in-Arrear). Hence, Dividend Payable = (5,00,000 – 40,000) × 15% = 69,000.
Question 55.
R Ltd. purchased the business of C Ltd. for ₹ 2,70,000 payable in fully paid shares. R Ltd. allotted equity shares of ₹ 10 each fully paid in satisfaction of the claim by C Ltd. Such shares are issued at par. The number of shares to be issued by R Ltd. to settle the purchase consideration = ?
(A) 22,500
(B) 27,500
(C) 27,000
(D) 30,000
Answer:
(C) 27,000
No. of shares to be issued = \(=\frac{\text { Purchase Consideration }}{\text { Issue Price }}=\frac{2,70,000}{10}\) = 27,000 shares
Question 56.
R Ltd. purchased the business of C Ltd. for ₹ 2,70,000 payable in fully paid shares. R Ltd. allotted equity shares of ₹ 10 each fully paid in satisfaction of the claim by C Ltd. Such shares are issued at premium of 20%. Number of shares to be issued by R Ltd. to settle the purchase consideration=?
(A) 22,500 shares
(B) 27,500 shares
(C) 27,000 shares
(D) 30,000 shares
Answer:
(A) 22,500 shares
No. of shares to be issued = \(=\frac{\text { Purchase Consideration }}{\text { Issue Price }}=\frac{2,70,000}{10}\) = 22500 shares.
Question 57.
X was issued 100 shares of ₹ 10 each at a premium of ₹ 1, he paid application money which in total amounted to ₹ 5 (excluding premium) and failed to balance call money of ₹ 5. Find the maximum discount that can be given at the time of re-issue of shares.
(A) ₹ 2
(B) ₹ 4
(C) ₹ 6
(D) ₹ 5
Answer:
(D) ₹ 5
At the time of reissue of shares maximum discount that can be exceed the amount received on forfeited shares. Hence, 10 – 5 =5
Question 58.
S Ltd. acquired fixed assets worth ₹ 15,00,000 by issue of shares of ₹ 100 at a premium of 25%. The number of shares to be issued by S Ltd. to settle the purchase consideration ?
(A) 12,000 shares
(B) 15,000 shares
(C) 18,750 shares
(D) 11,250 shares
Answer:
(A) 12,000 shares
No. of shares to be issued \(=\frac{\text { Purchase Consideration }}{\text { Issue Price }}=\frac{15,00,000}{125}\)= 12,000 shares
Question 59.
Q Ltd. had allotted 1,00,000 shares to the applicants of 1,40,000 shares on pro-rata basis. The amount payable on application is ₹ 2. Mr. N applied for 4,200 shares. The number of shares allotted and the amount carried forward for adjustment against allotment money due from Mr. N =?
(A) 600 shares; ₹ 1,200
(B) 3,200 shares; ₹ 2,000
(C) 3,400 shares; ₹ 1,600
(D) 3,000 shares; ₹ 2,400
Answer:
(D) 3,000 shares; ₹ 2,400
Question 60.
R Ltd. forfeited 300 equity shares of ₹ 10 fully called-up, held by Mr. X for non- payment of first call of ₹ 2 and final of ₹ 3 each. However, he paid application money (5) ₹ 2 per share and allotment money @ ₹ 3 per share. At the time of forfeiture Share Capital A/c will be credited by …..
(A) ₹ 1,500
(B) ₹ 3,000
(C) ₹ 600
(D) ₹ 900
Answer:
(B) ₹ 3,000
Question 61.
R Ltd. forfeited 300 equity shares of ₹ 10 fully called-up, held by Mr. X for nonpayment of first call of ₹ 2 and final of ₹ 3 each. However, he paid application money @ ₹ 2 per share and allotment money @ ₹ 3 per share. These shares were reissued at ₹ 10 each. Amount to be transferred to Capital Reserve Account = ?
(A) ₹ 1,500
(B) ₹ 3,000
(C) ₹ 600
(D) ₹ 900
Answer:
(A) ₹ 1,500
Question 62.
R Ltd. forfeited 300 equity shares of ₹ 10 fully called-up, held by Mr. X for non- payment of first call of ₹ 2 and final of ₹ 3 each. However, he paid application money @ ₹ 2 per share and allotment money @ ₹ 3 per share. These shares were reissued at ₹ 7 each. Amount to be transferred to Capital Reserve Account = ?
(A) ₹ 1,500
(B) ₹ 3,000
(C) ₹ 600
(D) ₹ 900
Answer:
(C) ₹ 600
Question 63.
R Ltd. forfeited 300 equity shares of ₹ 10 fully called-up, held by Mr. X for nonpayment of first call of ₹ 2 and final of ₹ 3 each. However, he paid application money @ ₹ 2 per share and allotment money @ ₹ 3 per share. These shares were reissued at ₹ 12 each. Amount to be transferred to Capital Reserve Account = ?
(A) ₹ 1,500
(B) ₹ 3,000
(C) ₹ 600
(D) ₹ 900
Answer:
(A) ₹ 1,500
Question 64.
T Ltd. forfeited 500 equity shares of E ₹ 10 fully called-up, held by Mr. Ram for non-payment of allotment money of ₹ 5 (including ₹ 2 premium), first call of ₹ 2 and final of ₹ 3 each. However, he paid application money @ ₹ 2 per share. These shares were reissued at ₹ 10 each. On reissue amount to be transferred to I capital reserve account = ?
(A) ₹ 1,500
(B) ₹ 2,500
(C) ₹ 500
(D) ₹ 1,000
Answer:
(D) ₹ 1,000
Question 65.
T Ltd. forfeited 500 equity shares of S ₹ 10 fully called-up, held by Mr. Ram for non-payment of allotment money of ₹ 5 (including ₹ 2 premium), first call of ₹ 2 and final of ₹ 3 each. However, he paid application money @₹ 2 per share. These shares were reissued at ₹ 9 each. On reissue amount to be transferred to capital reserve account = ?
(A) ₹ 1,500
(B) ₹ 2,500
(C) ₹ 500
(D) ₹ 1,000
Answer:
(C) ₹ 500
Question 66.
T Ltd. forfeited 500 equity shares of ₹ 10 fully cailed-up, held by Mr. Ram for non-payment of allotment money of ₹ 5 (including ₹ 2 premium), first call of ₹ 2 and final of ₹ 3 each. However, he paid application money (a) ₹ 2 per share. These shares were reissued at ₹ 13 each.On reissue amount to be transferred to capital reserve account = ?
(A) ₹ 1,500
(B) ₹ 2,500
(C) ₹ 500
(D) ₹ 1,000
Answer:
(D) ₹ 1,000
Question 67.
W Ltd. forfeited 400 equity shares of ₹ 10 fully called-up, held by Mr. P for non payment of final of ₹ 3 each. However, he paid application money @ ₹ 2, Allotment ₹ 2 and first call ₹ 3 per share. These shares were reissued at ₹ 10 each. On reissue amount to be transferred to capital reserve account = ?
(A) ₹ 2,800
(B) ₹ 1,600
(C) ₹ 1,200
(D) ₹ 400
Answer:
(A) ₹ 2,800
Question 68.
W Ltd. forfeited 400 equity shares of X 10 fully called-up, held by Mr. P for nonpayment of final of ₹ 3 each. However, he paid application money @ ₹ 2, Allotment ₹ 2 and first call ₹ 3 per share. These shares were reissued at ₹ 7 each. On reissue amount to be transferred to capital reserve account= ?
(A) ₹ 2,400
(B) ₹ 1,600
(C) ₹ 1,200
(D) ₹ 400
Answer:
(B) ₹ 1,600
Question 69.
W Ltd. forfeited 400 equity shares of ₹ 10 fully called-up, held by Mr. P for nonpayment of final of ₹ 3 each. However, he paid application money @₹ 2, Allotment ₹ 2 and first call ₹ 3 per share. These shares were reissued at ₹ 13 each.On reissue amount to be transferred to capital reserve
account = ?
(A) ₹ 2,800
(B) ₹ 1,600
(C) ₹ 1,200
(D) ₹ 400
Answer:
(A) ₹ 2,800
Question 70.
X Ltd. forfeited 200 equity shares of ₹ 10 each, ₹ 8 called-up for non-payment of first call money @₹ 2 each. Application money @ ₹ 2 per share and allotment money @ ₹ 4 per share have already been received by the company. Out of these 150 share were reissued at 7 per share as showing ₹ 8 paid up. On reissue amount to be transferred to capital reserve account = ₹
(A) ₹ 1,200
(B) ₹ 1,600
(C) ₹ 1,050
(D) ₹ 750
Answer:
(D) ₹ 750
Question 71.
Jindal Ltd. forfeited 400 equity shares of ₹ 10 each, issued at par, held by Mr.X for non-payment of the first call of ₹ 2 per share and the final call of ₹ 3 per share. Out of these 250 equity shares were re-issued to Mr. Y ₹ 8 per share and the rest of these were re-issued to Mr. Z at ₹ 7 per share. On reissue amount to be transferred to Capital Reserve Account = ?
(A) ₹ 1,200
(B) ₹ 1,600
(C) ₹ 1,050
(D) ₹ 750
Answer:
(C) ₹ 1,050
Question 72.
A company has subscribed capital of 2,0, 000 equity shares of ₹25 each, ₹ 20 per share called up. The directors forfeited 200 equity held by a shareholder who failed to pay the first call made @ ₹ 10 per share. Later, the directors reissued these shares as ₹ 20 per share paid up at ₹ 15 per share. On reissue amount to be transferred to capital reserve account = ?
(A) ₹1,000
(B) ₹1,400
(C) ₹ 1,500
(D) ₹ 1,100
Answer:
(A) ₹ 1,000
Question 73.
Due to non-payment of first call of ₹ 3 per share, Mona Ltd. forfeited 100 shares of ₹ 10 each, which were issued at par, ₹ 8 per share were called-up till date. Of these forfeited shares. 80 shares were issued subsequently by Mona Ltd., at ₹ 5 as ₹ 8 paid-up per share. On reissue amount to be transferred to capital reserve account = ?
(A) ₹ 100
(B) ₹ 140
(C) ₹ 150
(D) ₹ 160
Answer:
(D) ₹ 160
Question 74.
Sukriti Ltd. forfeited 100 shares of ₹ 10 each for non-payment of final call of ₹ 2. Of these, 60 shares were re-issued @ ₹ 9 per share as fully paid. On reissue amount to be transferred to capital reserve account =?
(A) ₹ 420
(B) ₹ 800
(C) ₹ 200
(D) ₹ 540
Answer:
(A) ₹ 420
Question 75.
Z Ltd. issued 10,000 shares of ₹ 10 each. The called up value per share was ₹ 8. The company forfeited 200 shares of Mr. A for non-payment of 1st call money of ₹ 2 per share. He paid ₹ 6 for application and allotment money. On forfeiture, the share capital account will be -?
(A) Debited by ₹ 2,000
(B) Debited by ₹ 1,600
(C) Credited by ₹ 1,600
(D) Debited by ₹ 1,200
Answer:
(B) Debited by ₹ 1,600
On the forfeiture of shares Share Capital A/c is debited by called-up amount.
Hence, (200 × 8) = 1,600
Question 76.
Alex Ltd. forfeited 100 shares of ₹ 10 each issued at a premium of 20% (to be paid at the time of application money) on which allotment money of ₹ 4 and first call money of ₹ 3 were not received; the final call money of ₹ 2 is not yet called. These shares were originally allotted in the ratio of 4:5. These shares were subsequently re-issued at a discount of ₹ 1 per share, credited as ₹ 8 paid-up. On reissue amount to be transferred to capital reserve account = ?
(A) ₹ 90
(B) ₹ 81
(C) ₹ 75
(D) ₹ 54
Answer:
(C) ₹ 75
Calculations of shares applied:
For 4 allotted shares – 5 shares applied
For 100 shares – ?
\(\frac{100 \times 5}{4}\) = 125 shares
Question 77.
X Ltd. made a final call on equity shares @ ₹ 20 each. Face value of shares is ₹ 100. One shareholder holding 300 shares paid the final call after 2.5 months after it has become due. The company had adopted Table F of Schedule I to the Companies Act, 2013, the amount of interest on Calls- in-Arrear = ₹
(A) ₹ 75
(B) ₹ 125
(C) ₹ 150
(D) ₹100
Answer:
(B) ₹ 125
Interest on Calls-in-Arrear = 300 × 20 × 10% × \(\frac{2.5}{12}\) = 125
Question 78.
X Ltd. made a final call on equity shares @ ₹ 20 each. Face value of shares is ₹ 100. One shareholder holding 500 shares had paid the final call before 4 months it has become due. The company had adopted Table F of Schedule I to the Companies Act, 2013, the amount of interest on Calls- in-Advance = ?
(A) ₹ 333.33
(B) ₹ 400
(C) ₹ 2,000
(D) ₹ 600
Answer:
(B) ₹ 400
Interest on Calls-in-Advance = 500 × 20 × 12% × \(\frac{4}{12}\) = 400
Question 79.
Z Ltd. made the first call of X 30 per share on 15.1.2015. The last date of payment of call money was 31.1.2015. Mr. N, holding 50,000shares paid the call money on 15.3.2015. The company had adopted Table F of Schedule I to the Companies Act, 2013, the amount of interest on Calls- in-Arrear = ?
(A) ₹ 16,250
(B) ₹ 19,375
(C) ₹ 18,750
(D) ₹ 17,500
Answer:
(C) ₹ 18,750
Interest on Calls-in-Arrear = 50,000 × 30 × 10% × \(\frac{1.5}{12}\) =18,750
Question 80.
On 1.1.2015, X Ltd. makes an issue of 1,0, 000 equity shares of ₹ 100 each payable as follows:
Application ₹ 20
Allotment 30
Final Call 50 (3 months after allotment)
Applications were received for 1,20,000 shares and the directors refunded the excess application money. One shareholder, who was allotted 2,000, shares paid first and final call with allotment money and another shareholder did not pay allotment money on his 3,000 shares but which he paid with first and final call. Directors have decided to charge and allows interest, according to the Table F of Schedule I to the Companies Act, 2013. Amount of interest on calls-in- arrear = ₹
(A) ₹ 2,700
(B) ₹ 4,500
(C) ₹ 2,250
(D) ₹ 3,750
Answer:
(C) ₹ 2,250
Interest on Calls-in-Arrear = 3,000 × 30 × 10% × \(\frac{3}{12}\) = 2,250
Question 81.
On 1.1.2015, X Ltd. marks an issue of 1,0, 000 equity shares of ₹100 each payable as follows:
Application ₹ 20
Allotment 30
Final call 50 (3 months after allotment)
Applications were received for 1,20,000 shares and the directors refunded the excess application money. One shareholder, who was allotted 2,000, shares paid first and final call with allotment money and another shareholder did not pay allotment money on his 3,000 shares but which he paid with first and final call. Directors have decided to charge and allows interest, according to the Table F of Schedule I to the Companies Act, 2013. Interest on calls-in-advance = ₹
(A) ₹ 3,000
(B) ₹ 2,500
(C) ₹ 1,800
(D) ₹ 1,500
Answer:
(A) ₹ 3,000
Interest on Calls-in-Advance = 2,000 × 50 × 12% × \(\frac{3}{12}\) = 3,000
Question 82.
W Ltd. issued 2,00,000 shares of ₹ 100 each at a premium of 20% on May 01,2015, payable as follows:
On application (including premium) ₹ 45
On allotment ₹ 25
On first & final call ₹ 50
Sunil to whom 10,000 shares were allotted, has paid ₹ 5,00,000 on June 01,2015. At the time of remitting the allotment money, he indicated that the excess money should be adjusted towards the call money. The directors of the company made the first and final call on October 31, 2015. The company has a policy of paying interest on calls-in-advance as per Table F of Schedule I to the Companies Act, 2013. The amount of interest paid to Sunil on Calls-in-Advance will be……
(A) ₹ 25,000
(B) ₹ 12,500
(C) ₹ 20,833.33
(D) ₹ 18,750
Answer:
(B) ₹ 12,500
Amount due on allotment by Sunil = 10,000 × 25 = 2,50,000.
Thus, Calls-in-Advance = 5,00,000 – 2,50,000 = 2,50,000
2,50,0 × 12% × \(\frac{5}{12}\)= 12,500
Question 83.
Director of ZPA Ltd. made a final call of ₹ 50 per share on 1st August, 2015 indicating the last date of payment of call to be 31st August, 2015. Mr. Black holding 5,000 shares paid the call money on 15 October, 2015. The company has a policy of paying interest on calls-in-arrear as per Table F of Schedule I to the Companies Act, 2013. Interest on calls-in-arrear = ?
(A) ₹ 3,125
(B) ₹ 1,562.50
(C) ₹ 1,875
(D) ₹ 1,500
Answer:
(A) ₹ 3,125
Interest on Calls-in-Arrear = 5,000 × 50 × 10% × \(\frac{1.5}{12}\) = 3,125
Question 84.
Director of NSZ Ltd. made a final call of ₹ 50 per share on 1st August, 2015 indicating the last date of payment of call to be 31st August, 2015. Mr. Black holding 8,000shares paid the call money on 15 June, 2015 along with first call-in-advance. The company has a policy of paying interest on calls-in-advance as per Table F of Schedule I to the Companies Act, 2013. Interest on calls-in-advance= ?
(A) ₹ 6,000
(B) ₹ 8,333.33
(C) ₹ 5,000
(D) ₹ 10,000
Answer:
(D) ₹ 10,000
Interest on Calls-in-Advance = 8,000 × 50 × 12% × \(\frac{2.5}{12}\) = 10,000
Question 85.
Following data is available from the records of NS Ltd.
Issued capital — 2,00,000
Call in arrear — 10,000
P&L credit balance 1.4.2018 — 67,000
Profit for the year — 1,90,610
The company wants to create debenture redemption reserve and transfer ₹ 50,000 every year.
The company declared 1096 dividend.
The balance of surplus after effecting the above transaction = ₹
(A) ₹ 1,06,000
(B) ₹ 1,06,810
(C) ₹ 1,68,100
(D) ₹ 1,88,610
Answer:
(D) ₹ 1,88,610
Dividend = (2,00,000 – 10,000) × 10% = 19,000
Surplus after dividend = 67,000 + 1,90,610 – 19,000 – 50,000 = 1,88,610
Question 86.
N Ltd. purchased fixed asset of ₹ 28,80,000. The consideration was paid by issue of shares of ₹ 100 each at 20% premium. No of shares to be issued -………….
(A) 32,000 shares
(B) 36,000 shares
(C) 28,800 shares
(D) 24,000 shares
Answer:
(D) 24,000 shares
Question 87.
Z Ltd. proposed to issue 1,00,000 equity shares of ₹ 100 each at a premium of 20%. The minimum amount of application money to be collected per share as per the Companies Act, 2013 will be
(A) ₹5
(B) ₹6
(C) ₹12
(D) ₹ 8
Answer:
(A) ₹5
Minimum amount to be collected as per Companies Act, 2013:
Face Value × 5% = 100 × 5% = 5
Question 88.
Z Ltd. proposed to issue 1,00,000 equity shares of ₹ 100 each at a premium of 20%. The minimum amount of application money to be collected per share as per the SEBI Regulations will be -………….
(A) ₹ 25
(B) ₹ 30
(C) ₹ 120
(D) ₹50
Answer:
(B) ₹ 30
Minimum amount to be collected as per SEBI Regulations :
Issue price × 25% = 120 × 25% = 30
Question 89.
Discount on issue of debentures is a -………….
(A) Capital loss to be shown as goodwill
(B) Capital loss to be written off over the tenure of debentures
(C) Revenue loss to be charged in the year of issue
(D) Capital loss to be written off from the capital reserve
Answer:
(B) Capital loss to be written off over the tenure of debentures