Practice 50 MCQ For Corporate Account
a) Minimum Subscription
b) Under-Subscription
c) Over- Subscription
d) Maximum Subscription
B) Under-Subscription
52) When company receives applications for more number of shares than the number of shares offered to the public for subscription, it is a case of
a) Under- Subscription
b) Over-Subscription
c) Minimum-Subscription
d) Maximum-Subscription
b) Over-Subscription
53) What indicates the amount which is received from the shareholders before the calls are made?
a) Calls-in-Advance
b) Calls-in-Arrears.
c) Capital Reserve
d) Securities Premium
a) Calls-in-Advance
54) When calls become actually due, the calls-in-advance account is adjusted at the time of the call. The entry will be:
a) Calls-in-Advance A/c. Dr.
To Final Call A/c
b) Calls-in-Advance A/c Dr.
To First Call A/c
c) Calls-in-Advance A/c. Dr.
To Second Call A/c
d) Calls-in-Advance A/c Dr.
To Particular Call A/c
d) Calls-in-Advance A/c Dr.
To Particular Call A/c
55) Which shares are issued to the promoters for the services rendered by them (in the formation of a company) to the company ?
a) Forfeited Shares
b) Re-Issue of Shares
c) Deferred Shares
d) Preference Shares
c) Deferred Shares
56) G Ltd. acquired assets worth ₹75,000 from H Ltd. by issue of share of ₹10 at a premium of ₹5. The number of shares to be issued by G Ltd. to settle the purchase consideration:
a) 6,000 shares
b) 7,500 share
c) 9,375 shares
d) 5,000 shares
d) 5,000 shares
57) ABC Ltd. purchased assets of 795,000 from C Bros, It issued equity shares of ₹10 each fully paid. If issues are made at a premium of 25%. Ascertain the number of shares to be issued to the vendor.
a) 7,600 shares
b) 9.500 shares
c) 7,000 shares
d) 9,000 shares
a) 7,600 shares
58) Ram limited purchased assets from rajan and company for ₹5,00,000. A sum of ₹1,00,000 was paid by the means of a bank draft and for the balance due ram limited issued equity share of 710 each at a premium of 25%. The number of equity share issued will be:
a) 20.000 shares
b) 25,000 shares
c) 30,000 shares
d) 32,000 shares
d) 32,000 shares
a) Shares Issued at Par
b) Shares Issued at Premium
c) Shares Issued at Discount
d) Shares Issued for Consideration other than Cash
a) Shares Issued at Par
60) The journal entry belongs to which transaction?
Bank A/c. Dr.
To Shares Application A/c
a) Application Money is Received.
b) Application Money is Adjusted against Share Allotment.
c) Application Money is Transferred.
d) Application Money is Refunded due to
Oversubscription.
a) Application Money is Received.
61) When a company acquires some assets from other company or from any vendor and in lieu of purchase price the purchasing company issues shares rather than making cash payment, then such a issue of shares is called.
a) Shares Issued at Par
b) Shares Issued at Premium
c) Shares Issued at Discount
d) Shares Issued for Consideration other than Cash.
d) Shares Issued for Consideration other than Cash.
62) Under the provision of Companies Act, 2013 a company can issue
a) Equity Shares only
b) Equity Shares, Preference Shares and Sweat Shares (Under Special Conditions)
c) Only Preference Shares and Sweat Shares
d) Only Equity Shares and Preference Shares
63) Which of the following options is available in cases of over subscription?
a) Rejection of Excess Applications and Money Returned
b) Excess Application Money Adjusted towards Sums due on Allotment
c) Pro Rata Allotment
d) All of the Above
d) All of the Above
64) Forfeit shares may be____.
a) Cancel
b) Re-issue
c) Redeem
d) Both (a) and (b)
d) Both (a) and (b)
65) The discount allowed to the new buyers should not_____ the amount already paid by the defaulting member.
a) Exceed
b) Lesser
c) Zero
d) Equal
a) Exceed
66) In Forfeiture of shares- issued at par, which account should be debited with the amount of called-up on these shares.
a) Shares Call
b) Shares Capital
c) Shares Allotment
d) Shares Forfeited
b) Shares Capital
67) The effect of forfeiture is to cancel the_____ given to the shareholder.
a) First Call
b) Final Call
c) Allotment
d) Application
c) Allotment
68) ABC holds 50 shares of ₹10 each out of which he paid 23 on application but could not pay ₹3 on allotment and 74 on first and final call. Directors forfeited his shares. What amount is credited with shares forfeiture account?
a) ₹100
b) ₹400
c) ₹150
d) ₹500
c) ₹150
69) Once shares are_ , the can be re issued at company discretion.
Deleted
Forfeited
Surrendered
Applied
c) Surrendered
70) ____means cancellation of shares due to non- payment of allotment money or call money by the shareholders.
a) Forfeiture of Shares
b) Issue of Bonus Share
c) Redemption of Debentures
d) Issue of Preference Shares
a)Forfeiture of Shares
71) Voluntary return of shares by a shareholder to the company for their cancellation is known as_____.
a) Forfeiture of Shares
b) Cancellation of Shares
c) Surrender of Shares
d) Donation of Shares
c) Surrender of Shares
72) When only a portion of the forfeited shares are re- issued, only profit made on re-issue of such shares must be transferred to_____.
a) General Reserve Account
b) Securities Premium Account
c) Capital Reserve Account
d) Profit and Loss Account
c) Capital Reserve Account
73) When shares originally re-issued at discount are forfeited then amount of discount allowed on shares should be debited to
a) Shares Capital A/c
b) Shares Forfeiture A/c
c) Discount on Shares Capital A/c
d) Shares Call A/c
b) Shares Forfeiture A/c
74) In which case the accounting entries are made on the same pattern as in the case of "forfeiture of shares"?
a) Re-Issue of Shares
b) Surrender of Shares
c) Application of Shares
d) Allotment of Shares
b) Surrender of Shares
75) When shares originally issued at a premium on which the premium amount has not yet been received are forfeited, _has to be debited.
a) General Reserve Account
b) Securities Premium Account
c) Profit and Loss Account
d) Capital Reserve Account
b) Securities Premium Account
76) Which of the following entry is to be passed for Forfeiture of shares at par?
a) Shares Capital A/c. Dr.
To Shares Forfeiture A/c
To Shares (first/final) Call A/c
b) Shares Capital A/c Dr.
To Shares Forfeiture A/c
To Shares Application A/c
c) Shares Allotment A/c. Dr.
To Shares Forfeiture A/c
To Shares Capital A/c
d) Shares Forfeiture A/c Dr.
To Shares Capital A/c
To Shares Allotment A/c
a) Shares Capital A/c. Dr.
To Shares Forfeiture A/c
To Shares (first/final) Call A/c
77) What will be the posting of the balance in the shares forfeited account?
a) Deduction to the Total Paid-Up Capital
b) Multiplication to the Total Paid-Up Capital
c) Addition to the Total Paid-Up Capital
d) Division to the Total Paid-Up Capital
c) Addition to the Total Paid-Up Capital
78) Which schedule of the Companies Act, 2013, is for the disclosure of preference shares in the balance sheet?
a) Schedule V
b) Schedule III
c) Schedule VII
d) Schedule IV
b) Schedule III
79) _means 'repayment of capital'.
a) Issue
b) Re-issue
c) Redemption
d) Forfeiture
c) Redemption
80) Calculate the amount to be transferred to Capital Redemption Reserve Alc. If Redeemable preference shares ₹50,000 redeemable at par. New issue of shares ₹30,000 is also at par
a) ₹10,000
b) ₹50,000
c) ₹20,000
d) ₹80,000
c) ₹20,000
81) Dayal Co had 10,000, 10% redeemable preference shares of ₹100 each. fully paid-up The company decided to redeem these preference shares at par. by issue of sufficient number of equity shares of 10 each at a premium of 2 per share as fully paid-up. Calculate the amount of securities premium.
a) ₹1,00,000
b) ₹2,00,000
c) ₹5,00,000
d) ₹10,00,000
b) ₹2,00,000
82) Preference shares amounting to 1.00.000 are redeemed at a premium of 5% by issue of shares amounting to 50.000 at premium of 10%. The amount to be transferred to C.R.R will be.
a) ₹45,000
b) ₹50,000
c) ₹55,000
d) ₹40,000
b) ₹50,000
83) Dexter Corp. Issued 50,000 Equity shares of 10 each and 300, 10% Preference shares of 100 each. all shares being fully paid at premium of 5%. Show the amount payable on premium on redemption of preference shares capital a/c.
a) ₹10,000
b) ₹55,000
c) ₹50,000
d) ₹40,000
b) ₹55,000
84) If for the redemption of preference shares captial of ₹1,00,000, 5000 equity shares of ₹10 each are issued at discount of 10%, the amount to be transferred to captial redemption reserve fund will be.
45,000
55,000
50,000
40,000
c) Calls-in-Arrears
85) The Preference Shares will be redeemed.
a) At Par/at a Premium
b) At Par/Discount
c) Only Par
d) At Discount/ at a Premium.
a) At Par/at a Premium
86) When shares are redeemed out of proceeds of fresh issue of equity/preference shares which accounts should be credited:
a) Equity Share Capital A/c
b) Share Premium A/c
c) Bank A/c
d) Both (a) and (b)
d) Both (a) and (b)
87) Redemption of preference shares means the. capital back to the__of_
a) Repayment and Shareholders
b) Issue and Company
c) Purchase and Debtholders
d) Borrow and Company
a) Repayment and Shareholders
88) Which of the following accounts cannot be used for the purpose of creation of capital redemption reserve account?
a) Profit and Loss A/c
b) General Reserve A/c
c) Unclaimed Dividend A/c
d) Any Revenue Reserve A/c
c) Unclaimed Dividend A/c
89) Which of the following accounts is debited when bonus shares are issued out of capital redemption. reserve account?
a) Bonus to Shareholders A/c
b) Capital Redemption Reserve A/c
c) Bank A/c
d) Profit and Loss A/c
b) Capital Redemption Reserve A/c
90) Preference shares due for redemption should continue to be shown under the head until they are actually redeemed by the company.
a) Reserve and Surplus
b) Current Liabilities
c) Current Assets
d) Capital
d) Capital
91) Preference shares are due for redemption as per the provisions of ____.
a) Companies Act, 2013
b) Chartered Accountants Act, 1949
c) Banking Regulation Act, 1949
d) Indian Institutes of Management Act, 2017
a) Companies Act, 2013
92) Redemption is the process of
a) Repaying an Obligation as per Predetermined Terms and Conditions.
b) Distributing its Profits in some Other Forms than Cash.
c) Raising the Capital by Issuing Shares of a Company.
d) Re-Issuing the Forfeited Shares at any Price.
a) Repaying an Obligation as per Predetermined Terms and Conditions.
93) Which of the following is used for redemption of preference shares?
a) Proceeds of Fresh Issue of Bonds.
b) Proceeds of Fresh Issue of Equity Shares.
c) Proceeds of Fresh Issue of Debentures
d) Proceeds of Fresh Issue of Right Shares
b) Proceeds of Fresh Issue of Equity Shares.
94) Capital Redemption Reserve is created_
a) At the Redemption of Debenture
b) At the Refund of Fixed Deposit
c) When Bonus Shares are Redeemed Out
d) When Preference Shares are Redeemed Out of Profit
d) When Preference Shares are Redeemed Out of Profit
95) This journal entry is passed for which transaction?
Preference Shares Capital Alc Dr.
To (New) Shares Capital A/c
a) For Conversion of Shares
b) For Payment to Preference Shareholders
c) For Declaration of Bonus Share
d) For Adjusting Premium on Redemption of Preference Shares
a) For Conversion of Shares
96) This journal entry is passed for which transaction?
Redeemable Preference Share Capital A/c Dr.
Premium on Redemption of Preference Shares A/c Dr.
To Preference Shareholders A/c
a) For the Amounts Payable on Redemption
b) When Shares are Redeemed out of Profit and Transfer of Capital Redemption Reserve A/c
c) When Shares are Redeemed out of Proceeds of Fresh Issue of Equity/Preference shares
d) When Redeemable Preference Shares are due for Redemption
a) For the Amounts Payable on Redemption
97) When redeemable preference shares are due for redemption, which entry is passed?
a) Debit-Redeemable Preference Shares Capital A/c; Credit-Cash A/c
b) Debit-Redeemable Preference Shares Capital A/c; Credit-Preference shareholders A/c
c) Debit-Preference Shareholders A/c; Credit- Cash A/c
d) Debit-Preference Shareholders a/c; Credit- Capital Reduction a/c
b) Debit-Redeemable Preference Shares Capital A/c; Credit-Preference shareholders A/c
98) This journal entry is belongs to which transaction?
General Reserve A/c Dr.
To Capital Redemption Reserve Alc
a) When Shares are Redeemed Out of Profit and Transfer of Capital Redemption Reserve a/c.
b) When Shares are Redeemed Out of Proceeds of Fresh Issue of Equity/Preference shares.
c) When Bonus Shares are Issued Out of Capital Redemption Reserve Account/any Reserve.
d) For Payment to Preference Shareholders.
a) When Shares are Redeemed Out of Profit and Transfer of Capital Redemption Reserve a/c.
99) Which transaction belongs to this journal entry?
Bonus to Shareholders A/c Dr.
To Equity Shares Capital A/c
a) For Payment to Preference Shareholders
b) For Transferring the Bonus Account
c) For the Amounts Payable on Redemption
d) For Conversion of Shares
b) For Transferring the Bonus Account
100) Bonus shares are shares issued by a company to its shareholders ___.
a) Loss
b) Request
c) Discount
d) Free of Charge.
d) Free of Charge.
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