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
Share Application A/c and Share Allotment A/c is :
  • A
    Personal Account
    Correct
  • B
    Nominal Account
  • C
    Fictitious Account
  • D
    Real Account
2
According to Table A interest on Calls in Arrears will be :
  • A
    It is 8%
  • B
    It is 6%
  • C
    It is 4%
  • D
    It is 5%
    Correct
3
The Rate of Discount in normal circumstance will not be more than :
  • A
    It is 9%
  • B
    It is 6%
  • C
    It is 12%
  • D
    It is 10%
    Correct
4
Which Reserve is maintained when shares are issued by the company :
  • A
    Reserve Capital
  • B
    Capital Reserve
    Correct
  • C
    General Reserve
  • D
    Revenue Reserve
5
Securities premium account can be utilized for :
  • A
    To create the General Reserve
  • B
    None of These
  • C
    To pay the dividend to the equity shareholders
  • D
    To write off the preliminary expenses
    Correct
6
Discount on issue of Share will shown in the B/S under the heading:
  • A
    Current Assets
  • B
    Fixed Assets
  • C
    Loan and Advances
  • D
    Miscellaneous Expenditures
    Correct
7
According to Table A interest on Calls in advance will be :
  • A
    It is 10%
  • B
    It is 5%
  • C
    It is 9%
  • D
    It is 6%
    Correct
8
What is paid to the Shareholders :
  • A
    Dividend
    Correct
  • B
    Debentures always
  • C
    Interest
  • D
    Salary
9
Which account is debited When shares are issued to the promoters :
  • A
    Discount A/c
  • B
    Preliminary Expenses A/c
  • C
    Goodwill A/c
    Correct
  • D
    Premium A/c
10
Instead of using Share premium A/c we use Securities Premium A/c according to :
  • A
    Companies (Amendment) Act, 1999
    Correct
  • B
    Companies (Amendment) Act, 2001
  • C
    Companies (Amendment) Act,2,000
  • D
    Companies (Amendment) Act, 2002
11
After the issue of prospectus, share should allotted with in :
  • A
    90 days
  • B
    120 days
    Correct
  • C
    150 days
  • D
    80 days
12
Share Capital Account should be debited (at the time of forfeiture) with :
  • A
    Called up amount
    Correct
  • B
    Paid up amount
  • C
    Face Value
  • D
    None of these
13
Share Forfeiture account is :
  • A
    Fictitious Asset
  • B
    Misc. Expenditure
  • C
    Nominal Account
    Correct
  • D
    Personal Account
14
Shares can be forfeited only if permitted by :
  • A
    Income tax law
  • B
    Article of Association
    Correct
  • C
    The Directors
  • D
    Companies Act 1956
15
Notice is issued to the defaulter shareholder for :
  • A
    60 days
  • B
    14 days
    Correct
  • C
    15 days
  • D
    30 days