Class 12 Accountancy Chapter 1 (Part 1) - Accounting for share capital MCQs

Class 12 Accountancy Chapter 1 (Part 1) – Accounting for share capital MCQ Question Answers for CUET 2024

1. The period between the grant date and the date on which all the specified vesting conditions of an Employees Stock Option Plan (ESOP) need to be satisfied is called _____-

a.Vesting

b.Exercise Period

c.Exercise

d.Vesting Period

2. On an equity share of Rs. 10 the company has called up Rs. 8 but Rs. 6 have been received by the company is forfeited, the capital account should be debited by:

a.Rs. 6

b.Rs. 8

c.Rs. 10

d.Rs. 2

3. The profit on reissue of forfeited shares is transferred to:

a.Capital Reserve

b.General Reserve

c.Capital Redemption Reserve

d.Revenue Reserve

4. Reserve share capital means:

a.Portion of uncalled capital to be called only at liquidation

b.Oversubscribed capital

c.Under subscribed capital

d.Part of authorised capital to be called at the beginning

5. The Amount of buy back of shares in any financial year should not exceed ____ of the paid-up capital and free reserves.

a.25%

b.20%

c.33%

d.35%

6. Second, there must be an interval of at least ______between the making of two calls unless otherwise provided by the articles of association of the company.

a.Two Months

b.One Month

c.Fifteen Days

d.Three Months

7. Rahul holding 5000 Shares of Refinery Ltd. paid the amount of call @ Rs. 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 Calculated as

a.990

b.3000

c.1000

d.1200

8. A company forfeited 400 shares of 10 each on which application money of 3 has been paid. Out of these 2,000 shares were reissued as fully paid up and 4,000 has been transferred to capital reserve. Calculate the rate at which these shares were reissued:

a.Rs. 9 per share

b.Rs.10 per share

c.Rs. 11 per share

d.Rs. 8 per share

9. Which Company Limits the number of its Maximum members to 200?

a.Small Company

b.Private Company

c.Foreign Company

d.Public Company

10. If the amount of minimum subscription is not received to the extent of ____, the issue dissolves.

a.98%

b.95%

c.90%

d.80%

11. When shares are forfeited, the Share Capital Account is debited with:

a.Paid-up value of Shares

b.Market value of Shares

c.Called-up value of Shares

d. Nominal value of Shares

12. Shares now can be issued at ______

a.None of these

b.Both Of the Above

c.Discount

d.Par & Premium

13. If shares having Face value of Rs.4,00,000 are issued for purchase of assets of Rs.5,00,000, Rs.1,00,000 will be treated as____

a.Profit

b.Discount

c.Loss

d.Premium

14. A company issued 4,000 equity shares of Rs. 10 each at par payable as under: On application Rs. 3; on allotment Rs. 2; on first call Rs. 4 and on final call Rs. 1 per share. Applications were received for 10,000 shares. Allotment was made pro-rata. How much amount will be received in cash on allotment?

a.Nil

b.Rs. 4000

c.Rs. 8,000

d.Rs. 12,000

15. Interest on calls in arrears is charged according to “Table F” at

a.1/10

b.12/30

c.10%

d.12/30

16. Application money is never less than __ of face value.

a.15%

b.25%

c.5%

d.10%

17. Who are the real owners of a company?

a.Equity shareholders

b.Debenture holders

c.Board of Directors

d.Government

18. Boss Ltd. issued 39550 equity shares Rs. 10 each at 9.5 % premium. All shares were subscribed and amount was received. Which of the amount to be transferred to Securities Premium Reserve A/c?

a.Rs. 3557.25

b.Rs. 15977

c.Rs. 37572.5

d.Rs. 3757.5

19. On Money Refunded on Rejected Applications, Which Account is Debited?

a.Share Forfeiture A/c

b.Share Application and Allotment A/c

c.Bank A/c

d.Capital Reserve A/c

20. Paid up Capital is that portion of the ______ which has been actually received from the shareholders.

a.Issued Capital

b.Reserve Capital