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MCQs on Company Accounts Class 12

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MCQs on Company Accounts

The following questions are all from the previous year CBSE question papers. Students can have idea of the level and type of questions asked in examination, to prepare well for the coming final exam.

Question 1:

Alfa Ltd. invited applications for 50,000 equity shares of ₹10 each at a premium of 30%. The whole amount was payable on application. Applications were received for 2,50,000 shares. The company decided to allot the shares on a pro-rata basis to all the applicants. The amount refunded by the company was:

  1. ₹32,50,000
  2. ₹15,60,000
  3. ₹39,00,000
  4. *₹26,00,000

Question 2:

Reserve capital is that part of _________ capital which cannot be called except at the time of winding up of the company.

  1. Issued
  2. Called up
  3. *Uncalled
  4. Nominal

Question 3:

Xeno Ltd. issued 25,000 equity shares of ₹0 each. The amount was payable as follows: On Application ₹4 per share, On Allotment ₹5 per share, On First and Final call Balance All the shares offered were applied for and allotted. All the money due on allotment was received except on 1,500 shares. These shares were forfeited immediately after allotment. First and final call was not yet made. At the time of forfeiture, Share Capital Account will be debited by:

  1. ₹15,000
  2. ₹24,000
  3. *₹13,500
  4. ₹18,000

Question 4:

Assertion (A) : Irredeemable debentures are also known as perpetual debentures.

Reason (R) : The company does not give any undertaking for the repayment of money borrowed by issuing such debentures. They are repayable on the winding up of the company or on the expiry of a long period.

  1. *Both Assertion (A) and Reason (R) are correct and Reason (R) is the correct explanation of Assertion (A).
  2. Both Assertion (A) and Reason (R) are correct, but Reason (R) is not the correct explanation of Assertion (A).
  3. Assertion (A) is incorrect, but Reason (R) is correct.
  4. Assertion (A) is correct, but Reason (R) is incorrect.

Question 5:

Money received in advance from shareholders before it is actually called up by the directors is:

  1. *debited to calls in advance account
  2. credited to calls in advance account
  3. debited to share capital account
  4. credited to share capital account

MCQs on Company Accounts

Question 6:

An offer of securities or invitation to subscribe securities to a select group of persons is termed as:

  1. Buy back of shares
  2. Employee stock option plan
  3. *Private placement of shares
  4. Sweat Equity

Question 7:

A share of ₹100 on which ₹80 is received is forfeited for non-payment of final call of ₹20. The minimum price at which this share can be reissued is:

  1. ₹120
  2. ₹100
  3. ₹80
  4. *₹20

Question 8:

Shiv Ltd. forfeited 500 shares of ₹10 each on which ₹7 per share was paid. These shares were reissued for ₹9 per share fully paid. Amount transferred to Capital Reserve Account will be:

  1. *₹3000
  2. ₹5000
  3. ₹4500
  4. ₹3500

Question 9:

If a share of ₹100 on which ₹70 has been paid is forfeited, then at which minimum price can it be re-issued ?

  1. ₹100
  2. *₹30
  3. ₹70
  4. ₹130

Question 10:

If a share of ₹10 issued at a premium of ₹2 per share, on which ₹8 (including premium) has been called and ₹6 (including premium) has been paid by the shareholder, is forfeited, then Share Capital Account will be debited with :

  1. ₹10
  2. ₹4
  3. ₹8
  4. *₹6
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