These multiple-choice questions have been arranged depending on the most recent NCERT book for Class 12 Accountancy. Students ought to allude to MCQ Questions for Class 12 Accountancy with Answers to score more checks in the class 12 Accountancy exams. The Class 12 MCQ Questions of Issue of Shares with Answers have been arranged according to the most recent syllabus, assessment pattern proposed by CBSE.
Multiple-choice Questions with Answers can assist you with practicing and improve marks in tests and know your degree of readiness. Understudies should peruse the part Accounting for Share Capital and afterward endeavor the accompanying target questions. Understudies should peruse the section Accounting for Share Capital and a
1. A company has ……………
(A) Separate Legal Entity
(B) Perpetual Existence
(C) Limited Liability
(D) All of the Above
2. Shareholders are :
(A) Customers of the Company
(B) Owners of the Company
(C) Creditors of the Company
(D) None of these
3. Who are the real owners of a company?
(A) Government
(B) Board of Directors
(C) Equity shareholders
(D) Debenture holders
4. A Company is created by :
(A) Special act of the Parliament
(B) Companies Act
(C) Investors
(D) Members
5. An artificial person created by Law is called :
(A) Sole Trader ship
(B) Partnership Firm
(C) Company
(D) All of the Above
6. The liability of members in a Company is :
(A) Limited
(B) Unlimited
(C) Stable
(D) Fluctuating
7. Securities premium can not be applied ________.
(a) For paying dividends to members
(b) For issuing bonus shares to members
(c) For writing off preliminary expenses of the company
(d) For writing off discount on issue of debentures
8. What does reserve capital mean?
(a) A part of subscribed uncalled capital
(b) Reserve profit
(c) A part of capital reserve
(d) A part of capital redemption reserve
9. An issue of shares that is not a public issue but offered to a selected group of persons is called _______.
(a) Public offer
(b) Private placement of shares
(c) Initial public offer
(d) None of the above
10. When shares are forfeited, the share capital account is debited with ______.
(a) Nominal value of shares
(b) Market value of shares
(c) Called-up value of shares
(d) Paid-up value of shares
11. Forfeiture of shares results in the reduction of______.
(a) Paid-up capital
(b) Authorised capital
(c) Fixed assets
(d) Reserve capital
12. Discount allowed on the reissue of forfeited shares is debited to ______.
(a) Share capital A/c
(b) Share forfeiture A/c
(c) Profit and loss A/c
(d) General reserve A/c
13. The following amounts were payable on the issue of shares by a company: ₹ 3 on application, ₹2 on the first call, and ₹2 on the final call. S holding 500 shares paid only application and allotment money whereas Y holding 400 shares did not pay a final call. Amount of calls in arrear will be:
a) ₹3,800
b) ₹2,800
c) ₹1,800
d) ₹6,200
14. 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) ₹7
b) ₹20
c) ₹22
d) ₹25
15. 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 on calls in advance as per Table F will be:
a) ₹45
b) ₹60
c) ₹50
d) ₹120
16. Authorized capital of a company is divided into 5,00,000 shares and ₹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
b) ₹36,00,000
c) ₹50,00,000
d) ₹6,00,000
17. 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 a pro-rata basis. How many shares on the applicant for 3,000 shares will be allotted?
a) 2,500 shares
b) 3,600 shares
c) 4,500 shares
d) 2,000 shares
18. E Ltd had allotted 10,000 shares to the applications of 14,0000 shares on a pro-rata basis. The amount payable on the application was ₹2. 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
b) 340 shares, ₹160
c) 320 shares, ₹200
d) 300 shares, ₹240
19. Ordinary shares are also called-
(a) Equity shares
(b) Founder’s shares
(c) Deferred shares
(d) Preference shares
20. The maximum amount with which the company is registered is called-
(a) Authorized Share Capital
(b) Issued Share Capital
(c) Subscribed capital
(d) Called up capital
21. When shares are issued at premium amount of premium will be credited to–
(a) Securities premium account
(b) Share first call account
(c) Share allotment account
(d) Share forfeited account
22. Minimum number of members in case of public company is-
(a) 4
(b) 5
(c) 6
(d) 7
23. Maximum number of members in public limited company is –
(a) 10
(b) 20
(c) 50
(d) unlimited
24. Minimum number of members in case of private company is-
(a) 2
(b) 5
(c) 6
(d) 7
25. The forfeited shares can be reissued at-
(a) Par
(b) Premium
(c) Discount
(d) All of them
