CUET 2023 Accountancy Chapter 1 (Part 1) - Accounting for share capital MCQs

Accountancy Chapter 1 (Part 1) – Accounting for share capital MCQ Question Answers for CUET 2023

1. 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.One Month

b.Three Months

c.Fifteen Days

d.Two Months

2. 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.33%

c.35%

d.20%

3. 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.Rs. 12,000

b.Rs. 8,000

c.Nil

d.Rs. 4000

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

a.25%

b.5%

c.10%

d.15%

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

a.12/30

b.10%

c.1/10

d.12/30

6. Who are the real owners of a company?

a.Debenture holders

b.Equity shareholders

c.Government

d.Board of Directors

7. 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

8. 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.Discount

b.Profit

c.Premium

d.Loss

9. 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. 2

c.Rs. 8

d.Rs. 10

10. Reserve share capital means:

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

b.Under subscribed capital

c.Oversubscribed capital

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

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

a.Public Company

b.Small Company

c.Foreign Company

d.Private Company

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

a.98%

b.80%

c.90%

d.95%

13. 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. 3757.5

b.Rs. 15977

c.Rs. 3557.25

d.Rs. 37572.5

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

a.Capital Reserve

b.Revenue Reserve

c.General Reserve

d.Capital Redemption Reserve

15. 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. 11 per share

c.Rs.10 per share

d.Rs. 8 per share

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

a.Called-up value of Shares

b. Nominal value of Shares

c.Paid-up value of Shares

d.Market value of Shares

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

a.Share Forfeiture A/c

b.Bank A/c

c.Share Application and Allotment A/c

d.Capital Reserve A/c

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

a.Issued Capital

b.Reserve Capital

c.Called up Capital

d.Subscribed Capital

19. Shares now can be issued at ______

a.Discount

b.Both Of the Above

c.None of these

d.Par & Premium

20. 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.3000

b.990

c.1200

d.1000