Accountancy Chapter 1 (Part 1) – Accounting for share capital MCQ Question and Answers – MCQs for Practice

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 _____-

2. 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:

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

4. 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?

5. Who are the real owners of a company?

6. 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____

7. 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:

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

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

10. Shares now can be issued at ______

11. Reserve share capital means:

12. 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.

13. 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

14. 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?

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

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

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

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

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

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