Company Accounts Issue Of Shares CBSE Questions & Answers

Company Accounts Issue Of Shares

This is Accountancy Class 12 Company Accounts Issue of Shares CBSE Questions & Answers. There are 15 questions in this test with each question having around four answer choices.

Questions & Answers

1
A company not affected by the death of the, lunacy of its member. Which features is highlighted in this statement
  • A
    Perpetual existence
    Correct
  • B
    Common seal
  • C
    Separate legal entity
  • D
    Limited liability
2
Those share who carry preferential right in respect of dividend at a fixed rate are called
  • A
    None
  • B
    Both
  • C
    Preference share
    Correct
  • D
    Equity share
3
If no of shares applied for is more than the no. of shares offered to the public then that is called
  • A
    Under subscription
  • B
    Subscription
  • C
    Par Subscription
  • D
    Over subscription
    Correct
4
When an applicant gets less shares than the applied share, this situation is called__
  • A
    Pro-rata
    Correct
  • B
    Premium
  • C
    Rejection
  • D
    Discount
5
The balance of called up share capital is deducted in the balance sheet from
  • A
    Calls–in–Advance:
  • B
    Paid capital
  • C
    Called-up capital
    Correct
  • D
    Authorized capital
6
The amount of premium is decided by the board of Directors as per the guide lines issued by
  • A
    NIFTY
  • B
    SEBI
    Correct
  • C
    BSE
  • D
    Company
7
On receipt of application money share application amount should be
  • A
    Credited
    Correct
  • B
    Debited
  • C
    Both A and B
  • D
    No entry to be made
8
If he Forfeited shares were issued at a premium and the premium money is already received on those Forfeited shares, security premium A/c will
  • A
    Debited
  • B
    not be cancelled or debited
    Correct
  • C
    Can not say
  • D
    None of these
9
Any profit on reissue of Forfeited shares represents capital profit & hence it should be transferred to
  • A
    Authorized capital
  • B
    Asset side of balance sheet
  • C
    Capital reserve
    Correct
  • D
    Share capital
10
Entry for reissue of forfeited shares at discount will be
  • A
    Bank A/c Dr. Share Forfeited A/c Dr. To Share Capital A/c
    Correct
  • B
    Bank A/c Dr. To Share Capital A/c
  • C
    Share Capital A/c Dr. Share Forfeited A/c Dr. To Bank A/c
  • D
    Bank A/c Dr. Share Capital A/c Dr. To Share Forfeited A/c
11
The formula for calculating the profit on re-issue is
  • A
    Amount Premium Less Discount on Re-issue Option A
  • B
    Amount forfeited Less Discount on Issue Option B
  • C
    Amount Discount Less Discount on Re-issue Option C
  • D
    Amount forfeited Less Discount on Re-issue Option D
    Correct
12
Stages of Incorporation of company are (a) Promotion (b) Capital subscription (c) Incorporation (d) Commencement of business. Arrange them in order
  • A
    c,a,b,d
  • B
    a,c,d,b
  • C
    d,a,c,b
  • D
    a,c,b,d
    Correct
13
Shares can be issued in two ways
  • A
    Both
    Correct
  • B
    None of these
  • C
    for cash
  • D
    for consideration other than cash
14
Which of the following can be used for buy back of shares
  • A
    Proceeds of fresh issue of shares
  • B
    Free reserves
    Correct
  • C
    Securities premium
  • D
    All of the above
15
Section___ imposes restrictions on issue of shares at discount
  • A
    79.0
    Correct
  • B
    76
  • C
    70
  • D
    73