S.Y B.COM
SEMESTER - III
MID SEMESTER EXAMINATION
HIGHER FINANCIAL ACCOUNTING
(HFA)
100 - MCQS
(1) A Company cannot issue -
(A) Redeemable Equity Shares
(B) Redeemable Debentures
(C) Redeemable Preference Shares
(D) Fully Convertible Debentures
(2) In Balance Sheet is not shown
(A) Authorized Capital
(B) Unissued Capital
(C) Subscribed Capital
(D) Paid-up Capital
(3) Consider the following statements:
Assertion (A): Rights Shares are given to equity Shareholders in proportion to their Share Capital in the Company.
Reason (R): Equity Shareholders assume the greatest risk in Company finance.
(A) Both A and R is true and R is the correct explanation for A
(B) Both A and R is true and R is not the correct explanation for A
(C) A is true but R is false
(D) A is false but R is true
(4) Right Shares are the Shares -
(A) Issued to the Directors of the Company
(B) First offered to the existing Shareholders
(C) First offered to the debenture holders
(D) Issued by a newly formed Company
(5) The balance appearing in the Books of a Company at the end of year were -
• Capital Redemption Reserve Alc - '50,000
• Security Premium - '5,000
• Revaluation Reserve - '20,000
• P&L A/c (Dr) -T 10,000.
Maximum amount available for distribution as Bonus Sares will be -
(A) Rs. 50,000
(B) Rs. 55,000
(C) Rs. 45,000
(D) Rs. 7, 57,000
(6) A Preference Share is one which enjoys a -
(A) Preferential right regarding payment of dividend
(B) Preferential right regarding allotment of Share
(C) Preferential right regarding payment of dividend and return of Capital
(D) Preferential right regarding return of Capital
(7) Which of the following statements is false?
(A) The Maximum Time limit for redemption of Preference shares is 20 years
(B) Preference Shareholders are Creditors of a Company
(C) That part of the Authorised Capital which can be called up only in the event of liquidation of a Company is called Reserve Capital
(D) Capital redemption reserve can be utilized only for issuing Fully paid Bonus Shares
(8) AS per the Companies Act, 2013, Preference Shares which are issued by company engaged in infrastructural projects which are redeemable within Years.
(A) 20 years
(B) 30 years
(C) 22 years
(D) 24 years
(9) Unless otherwise stated, a Preference Share is always deemed to be -
(A) Cumulative, participating and non-convertible
(B) Non-cumulative, non-participating and nonconvertible
(C) Cumulative, non-participating and non-convertible
(D) Non-cumulative, participating and non-convertible
(10) A Preference Share which carries the right of sharing in the surplus left after paying Equity Dividend is called -
(A) Cumulative Preference Share
(B) Convertible Preference Share
(C) Participating Preference Share
(D) All of above
(11) Which type of the following Shares have the right to receive dividends unpaid in prior years, whenever earnings become adequate?
(A) Participating Preference Shares
(B) Cumulative Preference Shares
(C) Callable Preference Shares
(D) Convertible Preference Shares
(12) The Companies Act, 2013 prohibits the issue of any Preference Share which is -
(A) Non-participating
(B) Non-redeemable
(C) Non-cumulative
(D) Non-convertible
(13) Redeemable Preference Shares issued by company not engaged in infra projects are those Shares on Which Capital is to be paid back within the stipulated period of -
(A) Not more than 20 yrs
(B) Not more than 5 yrs
(C) Not more than 15 yrs
(D) Not more than 10 yrs
(14) As per Schedule Ill of the Companies Act, 2013, under which of the following heads is Premium on issue of Preference Shares shown in the Balance Sheet of a Company?
(A) Miscellaneous expenditure
(B) Debentures
(C) Current liabilities and provisions
(D) Reserves and surplus
(15) Hero Industries purchased a Plant from Hind industries for Rs. 10,00,000. The Company paid Rs. 2,00,000 in cash and agreed to allot 15% redeemable Preference Shares of Rs.100 each for the balance amount. How many 15% Preference Shares of Rs. 100 each will be allotted to the Vendor, if the shares are issued at a premium of 25%?
(A) 6,400 Shares
(B) 7,200 Shares
(C) 8,000 Shares
(D ) 7,580 Shares
(16) M Limited was incorporated on 1st August 2018. to take over the running business of S & Co. with effect from 1st April 2018. The Profit and Loss Statement was prepared for the year ended 31st March 2019, Total Office Rent for the year is Rs.60,000. Office rent was paid @ Rs.4,000 per month upto 30th September and thereafter it was paid Rs.6,000 per month. Calculate Office rent to be allocated to Pre incorporation Period and Post incorperation period.
(A) Rs. 24,000, Rs. 36,000
(B) Rs. 15,000 Rs. 45,000
(C) Rs. 16,000, Rs.44,000
(D) None of these
(17) In how much time period a company has to physically destroy original shares purchased through the process of Buy Back?
(A) Within 7 days
(B) Within 15 days
(C) Within 30 days
(D) None of these
(18) Based on the following information, find out the amount payable to Preference Shareholders at the time of redemption of Preference Shares.
Rs. | Rs. | |
2500 10% Preference shares of RS. 100 each | 2,50,000 | |
Less: Final call of RS. 25 per share unpaid | 12,500 | 2,37,000 |
The Board of Directors decided to redeem only the fully paid up 10 % Preference shares at a premium of 10%.
(A) Rs.2,20,000
(B) Rs.2,00,000
(C) Rs.2,50,000
(D) None of these
(19) Prospectus is an _______ in case of a public issue which has all relevant details including price and number of shares or convertible securities being offered by the company.
(A) Offer Document
(B) Agenda Book
(C) Register of Share
(D) None of these
(20) During the year 2008-2009, T Ltd issued 20,000, 12%% Preterence Shares of 10 each at a premium of 5%, which are Redeemable after 4 years at par. During the year 2013-2014, as the Company did not have sufficient cash resources to redeem the Preference Shares, it issued 10,000, 14% debentures of 10 each at a premium of 10%. At the time of redempton of 12% Preference Shares, the amount to be transferred to Capital redemption reserve is -
(A) Rs. 1,10,000
(B) Rs. 2,00,000
(C) Rs. 1,00,000
(D) Rs. 90,000
(21) If the number of shares offered for subscription is more than the number of shares subscribed by the public, it shows _______.
(A) Over subscription
(B) Under subscription
(C) Full subscription
(D) None of these
(22) _______ means equity shares issued by the company to employees or directors either at a discount or for consideration other than cash for providing the know-how or creation of valuable intellectual property rights.
(A) Employees Stock Option
(B) Sweat Equity Shares
(C) Right Shares
(D) None of these.
(23) Shiva L imited was incorporated on 1st August 2018, to take over the running business of Shakti & Co.with effect from 1st April 2018. The company received certificate of commencement of business on 1st September 2018. Company prepares the profit and loss statement for the year ended 31st March 2019.
Sales for the months of August, September, October was triple as compared to other months during financial year starting from 01.04.2018 to 31.03.2019.
Calculate Sale ratio for allocating Pre and Post Incorporation Balances.
(A) 5:15
(B) 8:14
(C) 4:14
(D) None of these
(24) State whether the following statements are True (T) or False (F)
(1) When equity shares are issued to the employees of the company, it is called as right shares.
(2) The time for accepting Offer, in 'Ietter of Offer', may be minimum 15 days and maximum 30days.
(3) The issue of Bonus Shares inerease the total number of shares issued but does not increase the net worth of the company.
(4) The Company gets huge funds on account of Bonus issue.
(A) T, T, F, F,
(B) F, T, T, F
(C) F, F, T, T,
(D) None of these
(25) Preliminary expenses is Rs. 60,000. Time ratio 2:5. Sales ratio 3:1. Compute the amount to be charged to pre incorporation Period.
(A) Rs. 20,000
(B) Rs. 7,500
(C) Rs. 30,000
(D) Rs. Nil
(26) Preference Shares can be redeemed
(A) Only if they are fully paid
(B) Even if they are partly paid up
(C) Only on receipt of Court permission
(D) Only if they are not paid up
(27) Preference share cannot be redeemed, unless they are
(A) Re-issued
(B) Partly paid
(C) Fully paid
(D) Transferred
(28) Redemption of Preference Share Capital can be done -
(A) Out of the profits of the Company which could be otherwise available for dividend
(B) Out ot proceeds of a fresh issue of Shares made for the purpose of redemption
(C) When the shares are not fully paid up
(D) Either (a) or (b)
(29) Which of the following cannot be utilized for redemption of Preference Shares?
(A) The proceeds of fresh issue of Equity Shares
(B) The proceeds of issue of debentures
(C) The sale proceeds of investments
(D) The proceeds of issue of fixed deposit
(30) On redemption of Preference Shares money cannot be arranged (for payment to Shareholders) from -
(A) Sale of investment
(B) Issue of new Shares
(C) Bank loan or overdraft
(D) Sale of fixed assets
(31) If Preference Shares are redeemed out of the fresh issue of Equity Shares, which account will be credited?
(A) Capital Redemption Reserve Alc
(B) Capital Reserve Alc
(C) Equity Share Capital Ac
(D) Preference Share Capital A/c
(32) Which of the following condition should be satisfied to redeem the Preference Shares?
(A) No such Shares be redeemed unless they are fully paid.
(B) Where Shares are redeemed out of profits, a sum equal to nominal value of Shares redeemed must be transferred to Capital Redemption Reserve.
(C) Capital Redemption Reserve is available only for issue of fully paid bonus Shares.
(D) All of these
(33) Which of these is not one of the conditions for redemption of Redeemable Preference Share?
(A) Must be fully paid
(B) Premium of redemption may be paid out of existing Share Premium Alc
(C) Can be paid out of divisible profits only
(D) None of the above
(34) If Preference Shares are redeemed at premium such premium may be provided out of-
(A) Security Premium Alc
(B) Share Forfeited A/c
(C) Capital Redemption Reserve Alc
(D) Proceeds of fresh issue of Shares
(35) O Ltd has redeemed its 12% Preference Shares of Rs. 2,00,000 at a premium of 4%. To meet the redemption, it has issued Rs. 1,98,000 Shares of Rs. 20 each at a premium of 5%. The balance outstanding to the credit of Share premium Alc after adjusting premium on redemption of Preference Shares will be -
(A) Rs.1,900
(B) Rs. 8,000
(C) Rs. 1,904
(D) Nil
(36) The preference shares can be redeemed only when they are fully paid up _______.
(A) out of the profits of the company which would otherwise be available for dividend
(B) out of the proceeds of a fresh issue of shares made for the purposes of such redemption.
(C) Both A and B
(D) None of these.
(37) Z Limited had allotted 10000 shares to the applicants of 14000 shares on pro- rata basis. The amount payable on application is Rs.2. X applied for 420 shares. State the number of shares allotted and the amount carried forward for adjustment against allotment money due from X?
(A) 60 shares, Rs.120
(B) 300 shares, Rs.240
(C) 340 shares, Rs.160
(D) None of these.
(38) What is/are source/sources for redemption of preference shares?
(A) Proceeds on fresh issue of shares
(B) Out of profit of the company
(C) Both (A) and (B)
(D) None of these.
(39) A company may issue preference shares for a period exceeding _______ years but not exceeding _______ years for infrastructure projects (Specified in Schedule VI) as per Companies Act, 2013.
(A) 20, 40
(B) 20, 35
(C) 20, 30
(D) None of these.
(40) A share having a face value of Rs.100, issued at par, called up Rs. 100 was forfeited on non payment of Rs.40. On re-issue, what will be minimum reissue price of that share?
(A) Rs. 100
(B) Rs. 40
(C) Rs. 60
(D) None of these
(41) What is the full form of ASBA?
(A) Application Supported by Blocked Account
(B) Application Supported by Blocked Amount
(C) Application Supported by Backed Amount
(D) None of these.
(42) ABC Limited issued 5000, 10% preference shares of Rs. 100 each at par, which is redeemable at a premium of 10%. For the purpose of redemption, the company issued 3000 equity shares of Rs.100 each, at a premium of 20% per share. At the time of redemption of preference shares, the amount to he transferred by the company to Capital Redemption Reserve Account is _______.
(A) Rs. 2,00,000
(B) Rs. 5,00,000
(C) Rs. 2,20,000
(D) Rs.5,50,000
(43) Bonus to existing shareholders is paid to them _______.
(A) In cash
(B) In form of debenture
(C) In form of shares
(D) None of these
(44) A Limited decides to redeem 1,000 12% preference shares of Rs. 100 each fully paid. at a premium of 10% It has General Reserve Rs.80,000, Profit and Loss Rs 40,000 and Securities Premium Rs. 2,000.
The company decides to redeem the preference shares out of fresh issue of 10,000 equity shares of Rs 10 each at par. Calculate the amount to be transferred to Capital Redemption Reserve Account.
(A) Rs. 40,000
(B) Rs. Nil
(C) Rs. 1,00,000
(D) None of these
(45) A Company issued 15,000, 9% Preference Shares of 100 each at 5% discount and 2,00,000 Equity
Shares of Rs. 10 each at 10% premium. Full amount was received from the applicants in one instalment. Net balance in Securites Premium Ac will be -
(A) Rs. 2,00,000
(B) RS. 1,25,000
(C) Cannot be determined
(D) Rs. 75,000
(46) Indigo Ltd had 9,000, 10% Redeemable Preference Shares of Rs. 10 each, fully paid up. The Company
decided to redeem these Preference Shares at par by the issue of sufficient number of Equity Shares of Rs. 10 each fully paid up at a discount of 10%. The number of Equity Shares issued should be -
(A) 10,000
(B) 11,000
(C) 9,000
(D) None of the above
(47) A Company's Balance Sheet contains 1.6 Lakhs fully paid 10% Redeemable Preference shares and 1,00,000 as Revenue Reserve. It decides to redeem the Shares at 5% premium by maximum utilisation of earnings and from fresh issue of Shares.
If the issue is made at 20% premium, the minimum amount of fresh Equity issue will be -
(A) Rs. 36,000
(B) Rs. 60,000
(C) RS. 37,000
(D) Rs. 28,800
(48) The minimum subscription as prescribed by SEBI against the entire issue is-
(A) 95%
(B) 90%
(C) 5%
(D) None of these
(49) The number of Shares offered for subscription is more than the number of Shares subscribed by the public is known as -
(A) Full subscription
(B) Over subscription
(C) Under subscription
(D) Calls in arrear
(50) In case, the whole or a part of the Shares issued are not subscribed by the public who will subscribe such unsubscribed securities for a fixed commission?
(A) Brokers
(B) Underwriters
(C) Sales agents
(D) Commission agents
(51) Which of the following statement is not true with regard to issue of Shares by a Joint Stock Company?
(A) Shares can be issued for consideration other than cash
(B) In the event of over-subscription, the Company cannot allot more number of Shares than those specified in the prospectus.
(C) As per the SEBI guidelines, the minimum subscription clause is applicable only to the first issue of Share by the Company
(D) share application money is converted into Share Capital even before the Board of Directors approves the allotment of Shares.
(52) Which of the following statements is false?
(A) Shares can be issued for cash or any other consideration.
(B) In the event of over subscription, excess amount has to be refunded or a pro-rata allotment is to be made.
(C) SEBI guidelines are applicable not only for the first issue of Shares but also to subsequent issue of Shares.
(D) Share application money is automatically converted to Share Capital.
(53) If a Shareholder does not pay his dues on allotment, for the amount due there will be a -
(A) Share allotment A/c (Dr. balance)
(B) Share forfeiture A/c (Cr. balance)
(C) Share forfeiture Alc (Dr. balance)
(D) Share allotment A/c (Cr. balance)
(54) When Shares are allotted, the account to be credited will be?
(A) Share Capital Alc
(B) Share Application Alc
(C) Share AllotmentA/c
(D) Share First and Final call Alc
(55) When the money received on applications is to be adjusted at the time of allotment (partial allotment), then the account to be credited is-
(A) Share Capital Alc
(B) Share Allotment A/c
(C) Share Application Alc
(D) None of the above
(56) Following are details of ABC Ltd-
• Outstanding Redeemable Preference Shares = Rs.3,00,000.
• General Reserve = Rs. 1,50,000.
• Security Premium Balance = Rs. 35,000
• Fresh issue of Shares to be made at 10% discount. The value of fresh issued shares will be
(A) Rs. 1,66,667
(B) Rs. 1,50,000
(C) Rs. 1,85,000
(D) Rs. 1,80,000
(57) Determine the amount of fresh issue of Shares from the following information relating to Shagoon Leather Works Ltd-
• Redeemable Preference Shares Rs. 2,00,000
• Premium on redemption 10%
• Divisible profits available Rs. 60,000 Balance in General Reserve Rs. 40,000
• Balance in Security Premium A/c Rs. 25,000 Fresh issue to be made at a discount of 10%
(A) Shares of a nominal amount of Rs.1,00,000
(B) Shares of a nominal amount of Rs.1,11,111
(C) Shares of a nominal amount of Rs. 90,000
(D) None of the above
(58) Ajay Ltd decides to redeem 10,000 preference shares of Rs.10/- each at 10% premium. Balance in P& L A/c is Rs. 65,000 and securities premium A/c is Rs. 5,000. You are required to calculate the minimum number of equity shares at the rate of 10/- each at 20% discount
.
(A) 3125
(B) 5625
(C) 5000
(D) None
(59) To the extent Preference Shares have been redeemed out of profits, amount equal to the face value of Preference Shares redeemed should be transferred to -
(A) Development Rebate reserve
(B) General reserve
(C) Sinking fund
(D) Capital redemption reserve
(60) The balance of Capital Redemption Reserve Account is a available for -
(A) Redemption of Redeemable Preference Shares
(B) Redemption of Redeemable debentures
(C) Re-organization of Share Capital
(D) Issue of fully paid Bonus Shares
(61) Which of the following accounts can be transferred to capital redemption reserve account?
(A) General reserve account
(B) Forfeited shares account
(C) Profit prior to incorporation
(D) Share premium account
(62) Calculate the amount to be transferred to Capital Redemption Reserve A/c in each of the following cases
(i) Redeemable Preference Shares - Rs.50,000 redeemable at par. New issue of Shares - Rs.30,000 at par.
(A) Rs. 30,000
(B) Rs. 50,000
(C) Rs. 20,000
(D) None of these
(ii) Redeemable Preference Shares - Rs. 50,000 redeemable at 5% premium. New issue of Shares - Rs. 30,000 at par.
(A) Rs. 20,000
(B) Rs. 22,500
(C) Rs.25,000
(D) None of these
(iii) Redeemable Preference Shares - Rs. 50,000 redeemable at par. New issue of Shares- Rs.30,00o at premium of 5%.
(A) Rs 20,000
(B) Rs. 30,000
(C) Rs. 21,500
(D) None of these
(iv) Redeemable Preference Shares - Rs.50,000 redeemable at par. New issue of Shares - Rs.30,000 at discount of 10%.
(A) Rs. 20,000
(B) Rs. 23,000
(C) Rs. 27,000
(D) None of these
(v) Redeemable Preference Shares - Rs.50,000 redeemable at 5% premium. New issue of Shares - Rs. 30,000 at premium of 10%.
(A) Rs. 20,000
(B) Rs. 25,000
(C) Rs. 22,000
(D) None of these
(63) In buy back of shares, Debt Equity Ratio should be _______.
(A) 1 : 2
(B) 2 : 1
(C) 1 : 1
(D) None of these
(64) Sam Limited was incorporated on 1st October 2018, to take over the running business of Smit & Co., with effect from 1st April 2018. Company prepares the Profit and Loss statement for the year ended 31st March 2019. Purchase consideration Rs 5,00,000 was paid on 30th November 2018 and Interest on Purchase consideration is payable at 9% per annum.
Calculate Interest on purchase consideration and it's apportionment in Pre Incorporation and Post Incorporation Period.
(A) Rs 30,000, Pre incorporation - Rs 22,500, Post Incorporation - Rs.7,500
(B) Rs 45,000, Pre incorporation - Rs.30,000, Post Incorporation - Rs.15,000
(C) Rs.45,000, incorporation- Rs.22,000, Post Incorporation- Rs 22,500
(D) None of these
(65) Which one of the following item is not Statutory Record.
(A) Minutes of meetings
(B) Register of probates
(C) Article of Association
(D) None of these.
(66) Based on the following information, compute the Sales Ratio. Total sales of F Ltd. as on 31.03.2019 is Rs.32,00,000. It is incorporated on 01.10 2018. Up to 01.10.2018 sales is Rs 8,00,000.
(A) 3:1
(B) 1:3
(C) 4:1
(D) 1:4
(67)The rate of commission paid or agreed to be paid to underwriters shall not excced, in case of shares, _______ % of the price at which the shares are issued or a rate authorized by the Articles, whichever is less.
(A) 5 %
(B) 2.5 %
(C) 5.2 %
(D) None of these.
(68) Following are the balances appearing in books of Rose Limited as at 31.03 2019.
Particulars | Amount (RS) |
Equity share capital (RS 10 each fully paid) | 12,00,000 |
10% Preference share (RS 10 each fully paid) | 2,00,000 |
Profit & Loss | 3,00,000 |
Securities Premium | 50,000 |
Investment | 80,000 |
Bank | 4,00,000 |
The board of directors decided to redeem the 10% preference share at a premium of 20% on 31st march 2019 company issued 8000 equity shares at Rs. 10 each at par for redemption of preference shares. Investments were sold at Rs 70,000. Premium on redemption is required to be set off against the securities premium A/c. Calculate Profit and Loss Balance after redemption.
(A) Rs. 50,000
(B) Rs. 1,00,000
(C) Rs. 1,70,000
(D) None of these.
(69) If 100 shares of Rs.10 each are forfeited for non-payment of final call of Rs.3 per share and only 50 shares are reissued for Rs.250, amount to be transferred to Capital Reserve is _______.
(A) Rs. 100
(B) Rs. 300
(C) Rs. 400
(D) None of these
(70) Profit earned from the date of acquisition of the business to the date of incorporation should be transferred to_______.
(A) Goodwill A/C
(B) Capital Reserve A/C
(C) Profit & Loss A/C
(D) None of these
(71) A company issued 20,000 shares of which 75% was underwritten by an underwriter. Applications for 12,000 shares were received out of which 9,600 shares were marked by the underwriter. Determine the net liability of the underwriter.
(A) 5,400
(B) 15,000
(C) 10,400
(D) None of these
(72) lf for the redemption of Preference Share Capital of Rs.1,00,000, 5,000 Equity Shares of Rs.10 each are issued at a discount of 10%, the amount to be transferred to Capital Redemption Reserve Fund will be -
(A) Rs. 50,000
(B) Rs. 60,000
(C) Rs.55,000
(D) Rs. 45,000
(73) Preference Shares amounting to Rs.1,00,000 are redeemed at a premium of 5% by issue of Shares amounting to Rs.50,000 at a premium of 10%. The amount to be transferred to Capital redemption reserve account will be -
(A) Rs.50,000
(B) Rs.55,000
(C) Rs.57,500
(D) Rs.45,000
(74) Preference Shares amounting to Rs.2,50,000 are redeemed at a premium of 5%, by issue of Shares amounting to Rs.1,50,000 at a premium of 10%. The amount to be transferred to Capital redemption reserve will be -
(A) Rs. 1,11,000
(B) Rs. 2,00,000
(C) Rs. 1,05,000
(D) Rs. 1,00,000
(75) Redeemable Preference Shares of Rs. 1,00,000 are redeemed at par for which purpose fresh equity shares of Rs. 80,000 are issued at a discount of 10%. The amount to be transferred to Capital Redemption Reserve Fund will be -
(A) Rs. 80,000
(B) Rs. 1,00,000
(C) Rs. 28,000
(D) Rs. 20,000
(76) Preference Shares of Rs.2 Lakhs are redeemed at par for which fresh Equity Shares of Rs.80,000 are issued a 10% premium. What amount should be transferred to Capital Redemption Reserve ?
(A) Rs. 1,12,000
(B) Rs. 1,20,000
(C) Rs. 80,000
(D) Rs. 2,00,000
(77) A Limited Company has to redeem Redeemable Preference Shares of the value of Rs.1,00,000 for which the company has issued 3,000 Equity Shares of Rs.10 each at a premium of 10%. The amount to be transferred to Capital redemption reserve account will be -
(A) Rs. 70,000
(B) Rs. 1,00,000
(C) Rs. 97,000
(D) Rs. 67,000
(78) S Ltd issued 2,000, 10% Preference Shares of Rs.100 each at par which is redeemable at a premium of 10%. For the purpose of redemption, the Company issued 1,500 Equity Shares of Rs.100 each at a premium of 20% per Share. At the time of redemption of Preference Shares, the amount to be transterred by the Company to the Capital Redemption Reserve Account will be -
(A) Rs. 2,20,000
(B) Rs. 2,00,000
(C) Rs.40,000
(D) Rs. 50,000
(79) Rich Ltd had 3,000, 12% Redeemable Preference Shares of 100 each, fully paid up. The Company Issued 25,000 Equity Shares of Rs.10 each at par and 1,000 14% debentures of Rs.100 each. All amounts were received in full. The payment to Preference Shareholders was made in full. The amount to be transferred to Capital Redemption Reserve A/c is -
(A) Rs.50,000
(B) Rs.3,00,000
(C) Rs. 2,00,000
(D) Nill
(80) Ankush Ltd had issued 10,000, 10% Redeemable Preference Shares of Rs.100 each, fully paid up. The Company decided to redeem these Preference Shares at par, by issue of sufficient number of Equity Shares of Rs.10 each at a premium of 2 per Share as fully paid up. The amount to be transferred to Capital Redemption Reserve Account will be -
(A) Rs.12,00,000
(B) Rs.8,00,000
(C) Rs. 10,00,000
(D) Nil
(81) Light Ltd has 10,000, 5% Preference Shares of Rs.10 each to be redeemed after 5 years. The Company forfeited 500 Preference Shares on which final call of Rs.2 has not been received after due notice and cancelled these Shares on account of redemption. Remaining Shares were redeemed out of reserves of the Company. The amount to be credited to Capital redemption reserve will be -
(A) Rs. 99,500
(B) Rs. 99,000
(C) Rs. 95,000
(D) Rs. 1,00,000
(82) T Ltd issued 30,000, 12% Preference Shares of Rs.10 each at premium of 5%, which are Redeemable at par. The Company did not have sufficient cash resources to redeem the Preference Shares. Hence, it issued 20,000, 14% Debentures of Rs.10 each at a premium of 10%. The amount to be transferred to Capital Redemption Reserve A/c is -
(A) Rs.1,10,000
(B) Rs.3,00,000
(C Rs. 1,00,000
(D) Rs. 85,000
(83) A Company wishes to redeem its Preference Shares amounting to Rs.1,00,000 at a premium of 5% and for this purpose issued 5,000 Equity Shares of 10 each at a premium of 5%. The Company also has a balance of Rs.1,00,000 as General Reserves and Rs.50,000 in P& L A/c. The amount to be transferred to Capital Redemption Reserve A/c is -
(A) Rs. 52,500
(B) Rs. 50,000
(C) Rs. 1,05,000
(D) Rs. 47,500
(84) X Co Ltd has to redeem 1,000 Preference Shares of Rs.100 each at 10% premium. It issues 5,000 Equity Shares of Rs.10 each at 10% premium. General Reserve amount transferred to Capital redemption reserve will be -
(A) Rs.1,00,000
(B) Rs.50,000
(C) Rs.55,000
(D) Rs.1,10,000
(85) Match the following:-
Expenses | Basis of allocation between pre & post incorporation period |
(1) Salaries | (i) Sales Ratio |
(2) Discount | (ii) Post incorporation on sales period |
(3) Debenture interest | (iii) Time ratio |
(A) 1 - ii, 2 - iii, 3 - i
(B) 1 - iii, 2 - i, 3 - ii
(C) 1 - i, 2 - ii, 3 - iii
(D) None of these
(86) The amount called over and above the nominal value of Share should be credited to:
(A) Share premium A/c
(B) Share Capital A/c
(C) Share allotment A/c
(D) None of the above
(87) Premium received on the issue of Shares is shown in
(A) Debit side of Profit and Loss Account
(B) Asses side of the Balance Sheet
(C) Credit side of Profit and Loss Account
(D) Liabilities side of the Balance Sheet
(88) The minimum subscription as prescribed by SEBI against the entire issue is :
(A) 95%
(B) 90%
(C) 5%
(D) None
(89) Voluntary return of shares for cancellation by the shareholders is called:
(A) Surrender of shares
(B) Cancellation of share
(C) Forfeiture of share
(D) Distribution of shares
(90) Share allotment A/c is a :
(A) Real A/c
(B) Nominal A/c
(C) Personal A/c
(D) Company A/c
(91) Z Ltd issued 10,000 Shares of Rs.10 each. The called up value per Share Was Rs.8. The Company forfeited 200 Shares of Mr. A for non-payment of 1st call money of Rs.2 per Shares. He paid T 6 for
application and allotment money. On forfeiture, the Share Capital A/c will be
(A) Debited by Rs. 2,000
(B) Debited by Rs.1,600
(C) Credited by Rs.1,600
(D) Debited by Rs.1,200
(92) B Ltd issued Shares of Rs.10 each at a discount of 10% Mr. C purchased 30 Shares and paid Rs.2 on application but did not pay the allotment money of Rs.3. If the Company forfeited his entire Shares, the forfeiture A/c will be credited by
(A) Rs.54
(B) Rs.60
(C) Rs.81
(D) Rs.90
(93) A Company forfeited 2,000 Shares of 10 each (which were issued at par) held by Mr. John for non- payment of allotment money of Rs.4 per Share. The called-up value per Share was Rs. 9. On forfeiture,
the amount debited to Share Capital will be
(A) Rs.18,000
(B) Rs.2,000
(C) Rs.8,000
(D) Rs.10,000
(94) A Company forfeited 2,000 Shares of Rs.10 each (which were issued at par) held by Mr. John for non payment of allotment money of Rs.4 per Share. The called-up value per Share was Rs.9. On forfeiture, the amount debited to Share Capital is
(A) Rs. 18,000
(B) Rs. 2,000
(C) Rs. 8,000
(D) Rs.10,000
(95) A Company forfeited 2,000 Shares of Rs. 10 each (which were issued at par) held by Mr. John for non payment of allotment money of Rs.4 per Share. The called-up value per Share was Rs.9. On forfeiture, the amount debited to Share Capital will be
(A) Rs.18,000
(B) Rs.2,000
(C) Rs.8,000
(D) Rs.10,000
(96) Z Ltd issued 10,000 Shares of Rs.10 each. The called up value per Share was Rs. 8. The Company forfeited 200 Shares of Mr. A for non-payment of 1st call money of Rs.2 per Share. He paid Rs. 6 for application and allotment money. On forfeiture, the Share Capital A/c will be
(A) Debited by Rs.2,000
(B) Debited by Rs.1,600
(C) Credited by Rs.1,600
(D) Debited by Rs.1,200
(97) A to whom 100 Shares of Rs.10 each was allotted at par, paid Rs.3 on application, Rs.3 on allotment but could not paw the first and final call money of Rs.4. His Shares were forfeited by the Directors. The amount to be credited to Shares forfeited A/c will be
(A) Rs. 500
(B) Rs. T 400
(C) Rs. 600
(D) Rs. 1,000
(98) If Forfeited shares were issued at discount, then discount on issue of shares A/c should be :
(A) Credited
(B) Debited
(C) Can not be cancelled
(D) None of these
(99) When Shares are issued to promoters which A/c should be debited:
(A) Share capital A/c
(B) Assets A/c
(C) Promoters A/c
(D) Goodwill A/c
(100) The discount allowed on re - issue of forfeited share is debited to ...........
(A) General reserve A/c
(B) Capital reserve A/c
(C) Revaluation reserve A/c
(D) None of these
No comments:
Post a Comment