MCQ OF ISSUE OF SHARES accountancy class12
Q. 1. A company a .
(A) Separate Legal Entity
(C) Limited Liability
(B) Perpetual Existence
(D) All of the Above
Q. 2. Shareholders are:
(A) Customers of the Company
(B) Owners of the Company
(C) Creditors of the Company
(D) None of these
.
Q3. Who are the real owners of a
company?
(A) Government
(C) Equity shareholders
(B) Board of Directors
(D) Debenture holders
Q. 4. A Company is created
by
(A) Special act of the Parliament
(C) Investors
(B) Companies Act
(D) Members
Q. 5. An artificial person
created by Law is called
(A) Sole Tradership
(C) Company
(B) Partnership Firm
(D) All of the Above
Q.6. The liability of
members in a Company is
(A) Limited
(C) Stable
(B) Unlimited
(D) Fluctuating
0. 7. Liability of a
shareholder is limited to.of the shares all
him:
(A) Paid up Value
(C) Face value
(B) Called up value
(D) Reserve Price
0. 8. Maximum number of
members in a private company is:
(A) 7
(C) 20
(B) 200
(D) No Limit
(ii) Meaning, Nature and Types of Shares
Q.9. Capital of a Company
is divided in units which is called:
(A) Debenture
(C) Stock
(B) Share
(D) Bond
Q. 10.
Shareholders receive from the company:
(A) Interest
(B) Commission
(C)PROFIT
(D)Dividend
Q. 11. Equity shares
cannot be issued for the purpose of:
(A) Cash Receipts
(C) Redemption of debentures
(B) Purchase of assets
(D) Distribution of dividend
Q. 12. A Company may issue
(A) Equity Shares
(B) Preference Shares
(C) Equity and Preference both shares
(D) None of the Above
HOTS
Q.13. A company cannot
issue
(A) Redeemable Equity
(C) Redeemable Debentures
Hares
(B) Redeemable Preference Shares
(D) Fully Convertible Debentures
Q. 14. To whom dividend is
given at a fixed rate in a company?
(A) To equity shareholders
(C) To debentureholder
(B) To preference shareholders
(D) To promoters
Q. 15. Preference
shareholders have
(A) Preferential right as to dividend only
(B) Preferential right in the management
(C) Preferential right as to repayment of capital at the time of
liquidation of
the company
D) Preferential right as to dividend and repayment of capital at the
time of
liquidation of the company
Q. 16. The shares on which
there is no any pre-fixed rate of dividend is decided, but
rate of dividend is
fluctuating every year according to the availability
profits, such share are
called
(A) Equity Share
(B)(B) Non-cumulative preference
(C) Non-convertible preference share
(D) Non-guaranteed preference
share
Q. 17. Preference shares,
in case the holders of these have a right to convert their
preference shares into
equity shares at their option according to the terms of
issue, such shares are called
(A) Cumulative Preference Share
(B) Non-cumulative Preference Share
(D) Non-convertible Preference Share
(C) Convertible Preference Share
18. A preference share which does not carry the right of sharing in surplus profits
is called. ..
(A) Non-Cumulative Preference Share
(B) Non-participating Preference Share
(C) Irredeemable Preference Share
(D) Non-convertible Preference Share
0. 19. Which shareholders have a right to receive the arrears of dividend from future
profits
(A) Redeemable Preference Shares
(B) Participating Preference Shares
(C) Cumulative Preference Shares
(D) Non-Cumulative Preference Shares
Q.20. Which shareholders are returned their capital after some specified time:
(A) Redeemable Preference Shares
(B) Irredeemable Preference Shares
(C) Cumulative Preference Shares
(D) Participating Preference Shares
HOTS
Q. 21. The following statements apply to equity/preference shareholders. Which one
of them applies only to preference sharehoders?
(A) Shareholders risk the loss of investment
(B) Shareholders bear the risk of no dividends in the event of losses
(C) Shareholders usually have the right to vote
(D) Dividends are usually given at a set amount in every financial year
HOTS
Q.22. Unless otherwise stated, a preference share is always deemed to be:
(A) Cumulative, participating and non-convertible
(B) Non-cumulative, non-participating and non-convertible
(C) Cumulative, non-participating and non-convertible
(D) Non-cumulative, participating and non-convertible
Q 23 NOMINAL SHARE CAPITAL
IS……
(A) that part of authorised capital which is issued by the company
(B) the amount of capital which is actually applied by the prospective
shareholders
(C) the amount of capital which is actually paid by the shareholders
(D) th e maximum amount of share capital which a company is authorised to
issue
(B) the amount of capital which is actually applied by the prospective
shareholders
(C) the amount of capital which is actually paid by the shareholders
(D) th e maximum amount of share capital which a company is authorised to
issue
Q. 24. The portion of the capital which can be called-up only on the winding up.
the Company is called...
(A) Authorised Capital
(B) Called up Capital
(C) Uncalled Capital
(D) Reserve Capital
(CPT Dec. 2012)
Q.25. Capital included in
the Total of Balance Sheet of a Company is called:
(A) Issued Capital
(C) Called up Capital
(B) Subscribed Capital
(D) Authorised Capital
Q 26 ….. is transferred to
capital reserve.
(A) Profit from sale of fixed assets
(B) Premium on issue of shares
(C) Profit on forfeiture of shares
(D) All of the Above
Q. 27. Reserve Capital is
also known by
(A) Capital Reserve
(C) Subscribed Capital
(B) Called up Capital
D) None of the above
Q.28. Reserve Capital is
(A) Subscribed Capital
(B) Capital Reserve
(C) Uncalled Capital
(D) Part of the uncalled capital which may be called only at the time of
liquidation of the Company
0. 29. In the Balance
Sheet of a company, under the heading share capital, at the las
is shown:
(A) Authorised Share Capital
(C) Issued Share Capital
(B) Subscribed Share Capital
(D) Reserve Share Capital
Q. 30, Which of the
following is not shown under the heading ‘Share Capital, in a
Balance Sheet
(A) Subscribed Capital
(C) Reserve Capital
(B) Issued Capital
(D) Authorised Capital
Q.31. Reserve Capital is a
part of:
(A) Paid-up Capital
(B) Forfeited Share Capital
(C) Assets
(D) Capital to be called up only on liquidation of company
32. Which of the following statements is true?
(A) Authorised Capital -Issued Capital
(B) Authorised Capital> Issued Capital
(C) Paid up Capital> Issued Capital
(D) None of the above
(C.S. Foundation, Dec., 2012)
33. Authorised Capital of
a Company is mentioned in
(A) Memorandum of Association
(B) Articles of Association
(C) Prospectus
(D) Statement in lieu of Prospectus
34. In case of private
placement of shares, the lock in period is
(A) 1 Year
(C) 3 Years
(B) 2 Years
(D) None of the above
Q 35. In case of private placement of shares and
company does not invite the general
public for subscription of
shares in that case, company instead of issuing
prospectus
(A) Prepares the statement in lieu of prospectus
(B) Prepares the Report
(C) Prepares the Budget
(D) Prepares the Asset side of Balance Sheet
Q. 36. In case of private
placement of shares, to raise the amount of capital a
company
(A) invites the public through prospectus
(B) does not invite the public
(C) invites the public through advertisement
(D) invites the public through memorandum of association
037. Shares issued by a
company to its employees or directors in consideration of
Intellectual Property
Rights' are called
(A) Right Equity Shares
(C) Sweat Equity Shares
(B) Private Equity Shares
(D) Bonus Equity Shares
(iv) Issue and Allotment of Shares
Q. 38. A Company may issue
the shares
(A) By Private Placement of Shares
(B) By Public Subscription of Shares
(C) For Consideration other than cash
(D) By All of the Above
Q.39. Public subscription
of shares include
(A) To Issue Prospectus
(C) To Make Allotment
(B) To Receive Applications
(D) All of the Above
Q. 40 Which of the following will define, when appropriation of a certain number c
shares is made to an applicant in response to his application?
(A) Share allotment.
(B) Share forfeiture
(D) Share Purchase
(C) Share trading
(C.S. Foundation, Dec. 20
Q. 41. Issue of shares at a price lower than its face value is called
(B) Issue at a Profit
(A) Issue at a Loss
(D) Issue at a Premium
(C) Issue at a Discount
Q.42. According to Companies Act, Minimum Subscription has been fixed at.
of the issued amount.
(B) 50%
(A) 25%
(C) 90%
(D) 100%
Q.43. One of the conditions, in addition to others, for allotment of share is…
(A) Resolution in General Meeting
(B) Receiving Minimum Subscription
(C) Full Subscription by Public
D) Full Payment on Application
(C) Full Subscription by Public
D) Full Payment on Application
Q. 44. Persons who start a company are called ..
(A) Shareholders
(C) Promoters
(B) Directors
(D) Auditors
Q. 45. Minimum subscription amount of90% is related to which share capital
(A) Authorised Capital
(C)Paid up Capital
(B) Issued Capital
(D) Reserve Capital
Q. 46. Share Application Account is in the nature of
(A) Real Account
(C) Nominal Account
(B) Personal Account
(D) None of the above
Q47. As per SEBI Guidelines, Application
of the issue price of each share
(A) 10%
(C) 25%
(B) 15%
(D) 50%
Q. 48. 4,000 Equity Shares or 10 each were issued at 8% premium to the promoters
of a company for their services. Which account will be debited?
(A) Share Capital Account
(B) Goodwill Account/Incorporation Cost Account
(C) Securities Premium Reserve Account
(D) Cash Account
Q. 49. If vendors are issued fully paid shares of 31,25,000 in consideration of net
assets of 1,50,000, the balance of 225,000 will be credited to
(A) Statement of Profit & Loss
(C) Security Premium Reserve Account
(D) Capital Reserve Account
(B) Goodwill Account
(B) Goodwill Account
50. Issue of shares at a price higher than its face value is called
(A) Issue at a Profit
(B) Issue at a Premium
D) Issue at a Loss
(C) Issue at a Discount
Q. 51. On issue of shares
Premium is
(A) Profit
(C) Revenue Receipt
(B) Income
(D) Capital Profit
Q. 52. Which of the
following is not a capital profit?
(A) Profit prior to incorporation of the company
B) Profit from the sale of fixed assets
(C) Premium on issue of shares
(D) Compensation received on the termination of a contract
Q. 53. Maximum limit of Premium on share is :
(A) 5%
(C) No Limit
(B) 10%
(D) 100%
Q. 54. When a company
issues shares at a premium, the amount of premium should
be received by the
company:
(A) Along with application money (B) Along with allotment money
(C) Along with call
(D) Along with any of the above
Q. 55. Amount of
securities premium can be utilised for
(A) Writing off the preliminary expenses of the company
(B) Issuing bonus shares to the shareholders of the company
(C) Buy-back of its own shares
(D) All of the above
Q. 56. For what purpose
securities premium reserve account cannot be utilized?
(A) Amortization of preliminary expenses
(B) Distribution of dividend
(C) Issue of fully paid bonus shares
(D) Buy Back of own shares
Q57. Premium on the issue
of shares should be shown
(CPT Dec. 2010)
(A) On the Assets side of balance sheet
(B) On the Equity & Liabilities side of balance sheet
(C) In profit & loss Statement
(D) None of the Above
Q.58. A Company issued
50,000 shares of 20 each at 5% premium,10 were
payable on application and
balance on allotment. What will be the allotment
amount?
(A) 5,00,000
(C) 5,50,000
(B) 4,75,000
(D) 5,25,000
Q. 59. Interest on calls in arrears is charged according to Table F at:
(A) 6% pa.
(C) 5% pa.
(B) 10% pa.
(D) 12% pa.
Q.60. Amount of Calls in Arrears is shown in the Balance Sheet
(A) as deduction from issued capital
(B) as deduction from subscribed capital
(C) as addition to subscribed capital
(D) on the assets side
(CPT Dec. 2012)
Q.61. As per Table F, the Company is required to pay… interest on the
amount of calls in advance
(A) 12% pa.
(C) 10% pa.
(B) 5% pa.
(D) 600 p.a
Q.62. Amount of Calls in Advance is
(A) Added to Share Capital
(B) Deducted from Share Capital
(C) Shown on the Assets side
(D) Shown on the Equity & Liabilities side
HOTS
Q. 63. Following amounts were payable on issue of shares by a Company : 3 on
application, 3 on allotment 2 on first call and 2 on final call. X holding 500 shares paid only application and allotment money whereas Y holding 400 shares did not pay final call. Amount of calls in arrear will be:
(A) 3,800
(C) 1,800
(B) 2,800
(D) 6,200
Q. 64. The subscribed capital of a company is 80,00,000 and the nominal value of
the share is 100 each. There were no calls in arrear till the final call was
made. The final call made was paid on 77,500 shares only. The balance in the
calls in arrear amounted to 62,500. Calculate the final call on share.
(A) 27
(C) 22
(B) 20
(D) 25
Q. 65. A shareholder holding 600 shares paid the amount of call@5 per share on
1st November 2018 whereas the call was due on 1st March 2019. Interest onl
calls in advance as per Table F will be
(A) 45
(C)50
(B)60
(D) 20
0. 66. From which account, expenses on issue of shares will be written off first
of all:
(A) Statement of Profit and Loss
(B) Miscellaneous Expenditure Account
(C) Share Issue Expenses Account
(D) Securities Premium Reserve Account
Q 67 .Pro-rata allotment
of shares is made when there is
(A) Under subscription
(B) Oversubscription
(C) Equal subscription
(D) As and when desired by directors
Q. 68. Authorised capital
of a Company is divided into 5,00,000 shares of 10 each.
It issued 3,00,000 shares.
Public applied for 3,60,000 shares. Amount of
issued capital will be
(A) 30,00,000
(C) 50,00,000
(B) 36,00,000
(D) 6,00,000
Q.69. A Company invited
applications for 1,00,000 shares and it received
applications for 1,50,000
shares. Applications for 30,000 shares were rejected
and the remaining were
allotted shares on prorata basis. How many shares an
applicant for 3,000 shares
will be allotted
(A) 2,500 Shares
(C) 4,500 Shares
(B) 3,600 Shares
(D) 2,000 Shares
Q. 70. E Ltd, had allotted
10,000 shares to the applicants of 14,000 shares on pro-rata
basis. The amount payable
on application was 22. F applied for 420 shares.
The number of shares
allotted and the amount carried forward for adjustment
against allotment money
due from F will be
(A) 60 shares; 120
(C) 320 shares, 200
(B) 340 shares; 160
(D) 300 shares; 2240
(C.F. Foundation, June 2013)
Q.71. If applicants for
80,000 shares were allotted 60,000 shares on prorata basis,
the shareholder who was
allotted 1,200 shares must have applied for
(A) 900 Shares
(C) 1,600 Shares
(B) 3,600 Shares
(D) 4,800 Shares
Q. 72, A Company offered
50,000 shares of 10 each at par payable as to 3 on
applications, 5 on
allotment and the balance on final call. Applications were
received for 60,000 shares
and the allotment was made pro-rata. The excess
application money was to
be adjusted on allotment and call. How much
amount will be transferred
from Share Application A/c to Share Allotment A/C
(A) 1,80,000
(C) 1,50,000
(B) 230,000
(D) 50,000
other cHAPTERS
CHAPTER 2 -PARTNERSHIPOF A FIRM
CHAPTER 4-CHANGE IN PROFIT SHARING RATIO
CHAPTER 5- RETIREMENT/DEATHOF A PARTNER
CHAPTER 6-DISSOLUTIONOF A FIRM
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