Company Accounts – Issue, Forfeiture and Re-Issue of Shares 0 Company Accounts - Issue, Forfeiture and Re-Issue of Shares 1 / 30 Q.30 The capital with which a company is registered is called_____ Authorised capital Issued capital Subscribed capital 2 / 30 Q.29 Preference shares entitled to arrears of dividend are known as_____ Participating preference shares Convertible preference shares Cumulative preference shares 3 / 30 Q.28 A shareholder is a ______ of a joint stock company Creditor Owner Donor 4 / 30 Q.27 Share capital of a joint stock company is a_____ Owned capital Borrowed capital Reserve capital 5 / 30 Q.26 A share is a ______ property Movable Immovable Intangible 6 / 30 Q.25 The shares which are redeemed after a particular period are called______ Ordinary shares Redeemable preference shares Cumulative preference shares 7 / 30 Q.24 The excess price received over the par value of shares, should be ______to Securities Premium A/c Debited Credited Adjusted None of these 8 / 30 Q.23 When shares are forfeited, share capital account is______ Debited Credited Adjusted None of these 9 / 30 Q.22 Interest on calls-in-arrears is ____ for the company Income Expenditure Gain Loss 10 / 30 Q.21 ______ is deducted from the share capital to know paid up value of shares. Calls-in-advance Calls-in-arrears Forfeited Shares Discount on issue 11 / 30 Q.20 If shares are issued at its face value, it is called as issue at______ Premium Discount Par None of these 12 / 30 Q.19 The document inviting offers from public to subscribe its share is called______ Prospectus Share Certificate Both(a) and (b) None of these 13 / 30 Q.18 If the articles are silent regarding interest on calls-in-advance, the minimum rate of interest to be charged is _______ 5% 6% 8% None of these 14 / 30 Q.17 If articles are silent regarding interest on calls-in-arrears, the minimum rate of interest to be charged is_______ 5% p.a 6% p.a 8% p.a None of these 15 / 30 Q.16 As per Table A, the amount on call on a share must not exceed _____ percent. 5 10 20 25 16 / 30 Q.15 As per SEBI guidelines, the minimum amount payable on share application should be _______ of nominal value of share. 10 20 25 5 17 / 30 Q.14 Paid up value of shares allotted is called___ capital. Uncalled Issued paid up Nominal 18 / 30 Q.13 Nominal value of shares allotted to the public is called ______ capital. Authorised Reserve Paid up Nominal 19 / 30 Q.12 on issue of share ,the application money must not be less than 2.5% of the nominal value of shares 2.5% of the issue price of shares 5.0% of the nominal value of shares 5.0% of the issue price of shares 20 / 30 Q.11 if article are silent regarding interest on calls-in-advance ,the minimum rate of interest which can be charged on calls -in -advance is 5%p.m 6 % p.a. 5 % p.a None of these 21 / 30 Q.10 under the capital clause of the memorandum of association of the companies ,it is must to state The division of share capital into shares of fixed amount the division of the authorised capital into different classes of shares none of these the right of various classes of share holders 22 / 30 Q.9 A company has perpetual succession which means its continued existence for an indefinite period unless its all members dies its continued existence for an indefinite period unless its all members become insolvent its continued existence for an indefinite period unless its all members become of unsound mind its continued existence for an indefinite period unless it is wound up by law 23 / 30 Q.8 D ltd issued 10,000 equity shares of Rs.10. at a premium of Rs.20% .The share amount was payable as follows: On application Rs.2, on allotment Rs.5,( including premium) , on first call Rs.3 on second & final call Rs.2.Application were received for Rs.14,000 shares & Allotment was made on pro rata basis to applicants .L ,to whom ,300 shares were allotted ,failed to pay the first call and final call money .All his shares were forfeited after proper notice.Out of the forfeiture shares 200 shares were reissued @ Rs.9 per share.The amount transferred to capital reserve =? & the balance in share forfeiture account respectively, are Rs.200 Rs.1,100 Rs.800 Rs.1,300 24 / 30 Q.7 The maximum amount beyond which a company's not allowed to raise funds ,by issue of shares is its' issued capital reserve capital nominal capital subscribed capital 25 / 30 Q.6 The excess price received over the par value of shares, should be credited to Call-in-advance account Share capital account Reserve & surplus account securities premium account 26 / 30 Q.5 D issued 2,00,000 shares of Rs.100 each at a premium of Rs.20 per share payable as follows :On application Rs.20 , on allotment Rs.50(including premium) , on first call Rs.30 , On second & final call Rs.20 . Application were received for Rs.3,00,000 shares and pro rata allotment was made to applicants of 2,40,000 shares .Money excess received on application were employed on account of sum due on allotment as part of share capital.E ,to whom 4,000 shares were allotted ,failed to pay the allotment money & on his subsequent failure to pay the first call,his shares were forfeited & F ,the holder of 6,000 shares failed to pay the two calls and his shares were forfeited after the second call.Of the forfeited shares ,8,000 shares were reissued to G at a discount of 10% ,the whole of E's forfeited shares being reissued .Net balance in capital reserve account Rs. 2,96,000 Rs.80,000 Rs.2,10,000 Rs.2,16,000 27 / 30 Q.4 D issued 2,00,000 shares of Rs.100 each at a premium of Rs.20 per share payable as follows :On application Rs.20 , on allotment Rs.50(including premium) , on first call Rs.30 , On second & final call Rs.20 . Application were received for Rs.3,00,000 shares and pro rata allotment was made to applicants of 2,40,000 shares .Money excess received on application were employed on account of sum due on allotment as part of share capital.E ,to whom 4,000 shares were allotted ,failed to pay the allotment money & on his subsequent failure to pay the first call,his shares were forfeited & F ,the holder of 6,000 shares failed to pay the two calls and his shares were forfeited after the second call.Of the forfeited shares ,8,000 shares were reissued to G at a discount of 10% ,the whole of E's forfeited shares being reissued .Net balance in securities premium account Rs.39,20,000 Rs.39,36,000 Rs.39,28,000 Rs.39,44,000 28 / 30 Q.3 D issued 2,00,000 shares of Rs.100 each at a premium of Rs.20 per share payable as follows :On application Rs.20 , on allotment Rs.50(including premium) , on first call Rs.30 , On second & final call Rs.20 . Application were received for Rs.3,00,000 shares and pro rata allotment was made to applicants of 2,40,000 shares .Money excess received on application were employed on account of sum due on allotment as part of share capital.E ,to whom 4,000 shares were allotted ,failed to pay the allotment money & on his subsequent failure to pay the first call,his shares were forfeited & F ,the holder of 6,000 shares failed to pay the two calls and his shares were forfeited after the second call.Of the forfeited shares ,8,000 shares were reissued to G at a discount of 10% ,the whole of E's forfeited shares being reissued Total amount paid by G Rs.7,20,000 Rs.8,00,000 Rs.8,80,000 Rs.8,64,000 29 / 30 Q.2 D Ltd. issued 2,00,000 shares of Rs.100 each at a premium of Rs.20 per share payable as follows :On application Rs.20 , on allotment Rs.50(including premium) , on first call Rs.30 , On second & final call Rs.20 . Application were received for 3,00,000 shares and pro rata allotment was made to applicants of 2,40,000 shares .Money excess received on application were employed on account of sum due on allotment as part of share capital.E ,to whom 4,000 shares were allotted ,failed to pay the allotment money & on his subsequent failure to pay the first call,his shares were forfeited & F ,the holder of 6,000 shares failed to pay the two calls and his shares were forfeited after the second call.Of the forfeited shares ,8,000 shares were reissued to G at a discount of 10% ,the whole of E's forfeited shares being reissued .Application money received against allotment Rs.20,00,000 Rs.16,00,000 Rs.12,00,000 Rs.8,00,000 30 / 30 Q.1 B ltd was registered with a share capital of Rs.1,00,00,000 divided into equity shares of Rs.10 each .It issued 9,00,000 equity shares to the general public at par payable as to Rs.3 on application,Rs.3 on allotment & balance in 2 equal calls. The public had subscribed for Rs.8,50,000 shares .Till.31st march ,2006,only first call had been made .All the shareholders had paid up except Mr. holder of 25,000 shares ,who did not pay the call money. How much is B's ltd issued share capital Rs.1,00,00,000 Rs.90,00,000 Rs.85,00,000 Rs.68,00,000 Your score is LinkedIn Facebook Twitter VKontakte