Class 12 Accountancy MCQs Share Capital
Here are a large number of MCQs for practice to prepare for final exams. Note time taken and the accuracy of your work to score high in final exam.
- 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
2. Capital included in the Total of Balance Sheet of a Company is called:
a) Issued Capital
b) Subscribed Capital
c) Called up Capital
d) Authorised Capital
3. 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
4. A company cannot issue:
a) Redeemable Equity Shares
b) Redeemable Preference Shares
c) Redeemable Debentures
d) Fully Convertible Debentures
5. Shares issued by a company to its employees or directors in consideration of ‘Intellectual Property Rights’ are called:
a) Right Equity Shares
b) Private Equity Shares
c) Sweat Equity Shares
d) Bonus Equity Shares
6. Minimum subscription amount of 90% is related to which share capital:
a) Authorised Capital
b) Issued Capital
c) Paid up Capital
d) Reserve Capital
7. Share Application Account is in the nature of:
a) Real Account
b) Personal Account
c) Nominal Account
d) None of the above
8. As per SEBI Guidelines, Application money should not be less than ……………. of the issue price of each share:
a) 10%
b) 15%
c) 25%
d) 50%
9. 2,000 Equity Shares of ₹10 each were issued at 5% 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
10. Assertion - Under Section 62(1)(b) of the Companies Act, 2013, a Company may offer shares to its employees under a scheme of ‘Employees Stock Option’ which means the option (right) given to the whole-time directors, officers or permanent employees of a company to purchase or subscribe the securities offered by the company at a future date, at a pre-determined price, which is lower than the market price.
Reason - The company need not to pass a special resolution to this effect.
Alternatives:
a) Assertion is incorrect, but Reason is Correct
b) Assertion is correct, but Reason is incorrect
c) Both Assertion and Reason are Correct and Reason is the correct explanation of Assertion
d) Both Assertion and Reason are Correct, but Reason is not the correct explanation of Assertion
Class 12 Accountancy MCQs Share Capital
11. A company forfeited 3,000 shares of ₹10 each, on which only ₹5 per share (including ₹1 premium) has been paid. Out of these few shares were re-issued at a discount of ₹1 per share were and ₹6,000 were transferred to Capital Reserve. How many shares were re-issued?
a) 3,000 shares
b) 2,000 shares
c) 1,500 shares
d) 1,000 shares
12. Jeet Ltd. invited applications for 2,00,000 shares of ₹ 10 each payable ₹ 5 on application, ₹ 3 on allotment and ₹ 2 on call. Public has applied for 3,80,000 shares. Pro-rata allotment was made in the ratio 7:4. Determine the amount to be refunded by the company at the time of allotment of shares.
a) ₹3,00,000
b) ₹9,00,000
c) ₹1,50,000
d) ₹7,50,000
13. BTS Ltd. forfeited 700 shares of ₹ 10 each issued at a premium of 10% for non-payment of allotment money of ₹ 5 per share (including premium) and first and final call of ₹ 3 per share. On forfeiture of these shares, Share Forfeiture Account should be credited with:
a) ₹7,000
b) ₹1,400
c) ₹4,900
d) ₹2,100
14. Assertion - Interest on bearer debentures is paid to a person who produces the interest coupon attached to such debentures.
Reason - Bearer debentures are debentures which can be transferred by way of delivery and the company does not keep any record of the debenture holders.
Select the correct answer from the following:
a) Assertion is correct, but Reason is wrong.
b) Both Assertion and Reason are correct, but Reason is not the correct explanation of Assertion.
c) Both Assertion and Reason are correct, and Reason is the correct explanation of Assertion.
d) Both Assertion and Reason are wrong.
15. Which of the following statements does not relate to ‘Reserve Capital’:
a) It is part of uncalled capital of a company.
b) It cannot be used during the lifetime of a company.
c) It can be used for writing off capital losses.
d) It is part of subscribed capital.
16. If PQR ltd. is issued fully paid shares of ₹2,25,000 in consideration of machinery of ₹2,50,000, the balance of ₹25,000 will be credited to:
a) Statement of Profit & Loss
b) Goodwill Account
c) Security Premium Reserve Account
d) Capital Reserve Account
17. 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 from insurance company
18. Maximum limit of Premium on shares is:
a) 5%
b) 10%
c) No Limit
d) 100%
19. When a company issue shares at a premium, the amount of premium should be received by the company:
a) Along with application money
b) A long with allotment money
c) Along with calls
d) Along with any of the above
20. 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
Class 12 Accountancy MCQs Share Capital
21. A Company issued 20,000 shares of ₹50 each at 5% premium. ₹20 were payable on application and balance on allotment. What will be the allotment amount:
a) ₹5,00,000
b) ₹4,75,000
c) ₹6,50,000
d) ₹5,25,000
22. As per Table F, the Company is required to pay interest on the amount of calls in advance at:
a) 12% p.a.
b) 5% p.a.
c) 10% p.a.
d) 6% p.a.
23. 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. Mona holding 600 shares paid only application and allotment money whereas Shona holding 400 shares did not pay final call. Amount of calls in arrear will be:
a) ₹3,200
b) ₹2,800
c) ₹1,800
d) ₹6,200
24. The subscribed capital of a company is ₹60,00,000 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 was made and was paid on 57,500 shares only. The balance in the calls in arrear amounted to ₹62,500. Calculate the final call on share.
a) ₹7
b) ₹20
c) ₹22
d) ₹25
25. 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
26. CT Ltd. 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 pro-rata basis. How many shares an applicant for 6,000 shares will be allotted:
a) 2,500 Shares
b) 3,600 Shares
c) 4,500 Shares
d) 5,000 Shares
27. PT Ltd. had allotted 10,000 shares to the applicants of 14,000 shares on pro-rata basis. The amount payable on application was ₹3. Anand applied for 420 shares. The number of shares allotted to Anand will be:
a) 60 shares
b) 340 shares
c) 320 shares
d) 300 shares
28. If applicants for 75,000 shares were allotted 50,000 shares on pro-rata basis, the shareholder who was allotted 1,000 shares must have applied for:
a) 900 Shares
b) 3,600 Shares
c) 1,500 Shares
d) 4,800 Shares
29. A Company offered 50,000 shares of ₹10 each at par, payable as ₹3 on applications, ₹5 on allotment and the balance on final call. Applications were received for 70,000 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 adjusted from Share Application with Share Allotment?
a) ₹1,80,000
b) ₹30,000
c) ₹60,000
d) ₹50,000
30. RL Limited has offered to issue 10,000 Equity shares to its wholetime directors and employees at a concessional price. These shares are:
a) Bonus shares
b) Redeemable Preference shares
c) Equity shares
d) Sweat equity shares
Class 12 Accountancy MCQs Share Capital
31. CAE Ltd. offered 6,00,000 equity shares of ₹10 each, ₹8 called-up. Applications were received for 5,00,000 shares, all amounts were duly received except from Adesh holding 4,000 shares, who didn't pay after application money of ₹2 per share and from Umesh who holds 1,000 shares has paid only ₹6 per share. Adesh's shares were forfeited. The amount of subscribed capital to be shown in the Balance Sheet is:
a) ₹39,74,000
b) ₹39,96,000
c) ₹49,96,000
d) ₹49,74,000
32. CAE Ltd. forfeited 300 Equity Shares of ₹10 each, fully called-up, held by Karam for non-payment of allotment money of ₹3 per share and first and final call of ₹4 per share. Out of these, few shares were re-issued at a discount of ₹2 per share and ₹250 was transferred to Capital Reserve as gain on re-issue. Number of shares re-issued were:
a) 100 shares
b) 200 shares
c) 250 shares
d) 150 shares
33. Assertion - Securities Premium Account is not debited at the time of forfeiture if premium has been received in respect of the forfeited shares.
Reason - The Section 52(2) of Companies Act, 2013 restricts the use of Securities Premium received and credited to Securities Premium Account. In the context of above two statements, which of the following is correct:
a) Assertion is correct but Reason is incorrect
b) Both Assertion and Reason are incorrect
c) Both Assertion and Reason are correct, and Reason is the correct explanation of Assertion
d) Both Assertion and Reason are correct, but Reason is not the correct explanation of Assertion
34. CAE Ltd. forfeited 1,000 shares of ₹10 each (₹8 called-up) for the non-payment of the allotment money of ₹5 per share including ₹2 as premium. Out of these, few shares were reissued to Naresh at ₹7 per share as ₹8 called up and ₹3,200 were transferred to Capital Reserve. Number of shares reissued were:
a) 500 Shares
b) 600 shares
c) 700 shares
d) 800 shares
35. Assertion -TP Ltd. is registered with an authorised capital of 50,000 Equity Shares of ₹100 each of which 20,000 Equity Shares were issued and subscribed. All the money had been called-up except ₹25 per share which was declared as 'Reserve Capital', Share capital shown in Balance Sheet as 'Subscribed and Fully paid-up' will be nil. Reason - Reserve capital can be used only at the time of winding up. In the context of above two statements, which of the following is correct:
a) Both Assertion and Reason are correct, and Reason is the correct explanation of Assertion
b) Both Assertion and Reason are correct, but Reason is not the correct explanation of Assertion
c) Both Assertion and Reason are incorrect
d) Assertion is correct, but Reason is incorrect
36. TP Ltd. forfeited 600 shares of ₹10 each issued at a premium of 10% for non-payment of first and final call money of ₹3 (Including premium). Out of these 400 shares were reissued to Mohan as ₹10 paid-up for ₹11 per share. The minimum amount that company should collect at the time of reissue of the remaining 200 shares is:
a) ₹800
b) ₹400
c) ₹600
d) ₹200
37. If 10,000 shares of ₹10 each were forfeited for non-payment of final call money of ₹3 per share and only 7,000 of these shares were re-issued @₹ 11 per share as fully paid up, then what is the minimum amount that company must collect at the time of re-issue of the remaining 3,000 shares:
a) ₹21,000
b) ₹9,000
c) ₹16,000
d) ₹30,000
38. Assertion - A Company is Registered with an Authorised Capital of 5,00,000 Equity Shares of ₹10 each of which 2,00,000 Equity shares were issued and subscribed. All the money had been called up except ₹2 per share which was declared as ‘Reserve Capital’. The Share Capital reflected in balance sheet as ‘Subscribed and Fully paid up’ will be Zero.
Reason - Reserve Capital can be called up only at the time of winding up of the company:
a) Both Assertion and Reason are Correct, but Reason is not the correct explanation of Assertion
b) Both Assertion and Reason are Correct and Reason is the correct explanation of Assertion
c) Assertion is incorrect, but Reason is Correct.
d) Assertion is correct, but Reason is incorrect
39. A company forfeited 3,000 shares of ₹10 each, on which only ₹5 per share (including ₹1 premium) has been paid. Out of these few shares were re-issued at a discount of ₹1 per share were and ₹6,000 were transferred to Capital Reserve. How many shares were re-issued:
a) 3,000 shares
b) 1,000 shares
c) 2,000 shares
d) 1,500 shares
Class 12 Accountancy MCQs Share Capital - Answers
- d) Preferential right as to dividend and repayment of capital at the time of liquidation of the Company
- b) Subscribed Capital
- b) Authorised Capital > Issued Capital
- a) Redeemable Equity Shares
- c) Sweat Equity Shares
- b) Issued Capital
- b) Personal Account
- c) 25%
- b) Goodwill Account/Incorporation Cost Account
- c) Both Assertion and Reason are Correct and Reason is the correct explanation of Assertion
- b) 2,000 shares
- c) ₹1,50,000
- d) ₹2,100
- c) Both Assertion and Reason are correct, and Reason is the correct explanation of Assertion.
- d) It is part of subscribed capital.
- d) Capital Reserve Account
- d) Compensation received from insurance company
- c) No Limit
- d) Along with any of the above
- b) Distribution of dividend
- c) ₹6,50,000
- a) 12% p.a.
- a) ₹3,200
- d) ₹25
- d) Securities Premium Reserve Account
- d) 5,000 Shares
- d) 300 shares
- c) 1,500 Shares
- c) ₹60,000
- d) Sweat equity shares
- a) ₹39,74,000
- c) 250 shares
- c) Both Assertion and Reason are correct, and Reason is the correct explanation of Assertion
- d) 800 shares
- b) Both Assertion and Reason are correct, but Reason is not the correct explanation of Assertion
- b) ₹400
- b) ₹9,000
- b) Both Assertion and Reason are Correct and Reason is the correct explanation of Assertion
- c) 2,000 sharesClass 12 Accountancy MCQs Debentures
Class 12 Accountancy MCQs Dissolution of Partnership Firm