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