S.Y B.COM
SEMESTER - 3
HIGHER FINANCIAL ACCOUNTING
(HFA)
MCQs - 01 DECEMBER 2021
A. Sales ratio
B. Time ratio
C. Wholly charged to pre incorporation
D. Wholly charged to post incorporation
2. Which one of the following statements is/are correct so far as the SLR (Statutory Liquidity Ratio) is concerned?
A. To meet SLR, commercial banks can use cash only.
B. The ratio of liquid assets to demand and time liabilities is known as SLR. Both
A. A & B statements are correct
B. Both A & B statements are NOT correct
C. Only statement A is correct
D. Only statement B is correct
3. Match Part A with Part B: lf Time Ratio is 1:2 and Sales Ratio is 2:1. Divide the following Expenses in to Pre And Post Incorporation Period.
Part A [1] Salaries Rs.9,000 [2] Discount on Sales Rs.9000 [3] Preliminary Expenses Written Off Rs 9000
Part B (i) Post Rs.9,000 (ii) Pre Rs.9,000 (iii) Pre Rs.3,000; Post Rs.6,000 (iv) Pre Rs.6,000; Post Rs.3,000
A. 1(III), 2(lv), 3(I)
B. 1(III), 2(lv), 3(II)
C. 1(Iv), 2(III), 3 (I)
D. 1(lv), 2(III), 3(II)
4. If vendors are issued fully paid shares of Rs. 80,000, in consideration of net assets of Rs. 60,000, then the balance of Rs. 20,000 will be -
A. Debited to General reserve A/c
B. Debited to Goodwill A/c
C. Credited to Capital Reserve A/c
D. Credited to Share Premium A/c
5. In a case books of accounts being maintained at any other place other than registered office in India, as may be decided by resolution of Board of Directors, Company shall be require to intimate full address of such a place to registrar of companies within _________.
A. 21 days
B. 14 days
C. 7 days
D. 3 days
6. Administrative expenses like office rent are allocated on the basis of ________.
A. Sales ratio
B. Time ratio
C. Actual basis
D. Pre incorporation period
7. Q Ltd Issued 50,000 Equity shares of Rs.10 each at Rs.12 per share. Mr. X has underwritten 20,000 shares. Underwriting Commission will be paid @ 5% on issue price. Calculate the amount of underwriting commission to be paid to Mr. X.
A. Rs.10,000
B. Rs.12,000
C. Rs.5,000
D. Rs.6,000
8. Shares can be forfeited
A. For Non-payment of call money
B. For failure to attend AGM
C. For Non-payment of call money and failure to attend AGM both
D. Shares can never be forfeited
9. Ram Ltd. Was incorporated on 1st June 2020 to take over the business of MR. Shyam from 1st January 2020. The year ended on 31st December 2020. Find out Time Ratio?
A. 5:7
B. 6:5
C. 6:6
D. 1:1
10. When the number of shares offered for subscription is less than the number of shares subscribed by the public is called ________.
A. Full subscription
B. Under subscription
C. Over subscription
D. Minimum subscription
11. The date of purchase of business 1-1-2021; date of incorporation 1-4 2021. The date of year ending 31-12-2021. The average monthly sale of first 3 months is double than the average monthly sale of remaining period; so the sales ratio will be ________.
A. 2:3
B. 2:1
C. 1:2
D. 1:4
12. Preference share can be redeemed :
A. Only if they are fully paid
B. Even if they are partly paid up
C. After getting the permission from the court only
D. Both Fully Paid and Partly paid
13. For the calculation of profit prior and post to incorporation period, interest on debentures is to be a part of ________.
A. Administrative Expenses
B. Selling exp
C. Finance cost
D. Production cost
14. XYZ Ltd was incorporated on 1st August 2020 to take over the running business of SG Brothers with effect from 1st April 2020 and year ended on 31st march 2021. Managers Salary for the year 2020-2021 was Rs.85,000. It was increased by Rs.2000 from 1st August 2020. Calculate the amount distributed between pre and post incorporation period.
A. 17,000 and 68,000 respectively
B. 23,000 and 62,000 respectively
C. 20,000 and 65,000 respectively
D. 26,000 and 59,000 respectively
15. When preference shares are redeemed at a premium, provision for premium amount can be made from
A. Securities premium A/c
B. Amount received from issue of new shares
C. Share forfeiture A/c
D. Capital redemption reserve
16. D Ltd. forfeited 200 shares of Rs. 10 each, Rs.7 called up on which Ram had paid application money Rs. 3 per shares of these, 125 shares were re-issued to Shyam for Rs. 9 per share as fully paid up. The amount to be transferred to capital reserve on reissue of forfeited shares will be -
A. Rs. 125
B. RS. 250
C. Rs. 900
D. RS. 375
17. C Ltd had allotted 12,000 shares to the applicants of 18,000 shares on pro-rata basis. The amount payable on application is Rs.3, on Allotment Rs. 5 and on 1st call Rs. 2. A applied for 600 shares. State the no. of shares allotted and the amount carried forward for adjustment against allotment money due from A?
A. 400 shares; Rs.600
B. 200 shares; Rs.300
C. 300 Shares; Rs.400
D. 100 Shares; Rs.300
18. A Ltd. Decides to redeem 1,300 Preference Shares of RS. 100 each at a premium of 10%. It has P & L A/C (CR.) balance of RS. 1,40,000 and a Securities Premium of RS. 8,000. If it is decided to issue 6,250 Equity shares of Rs. 10 each for the above purpose, then the amount to be transferred to capital Redemption Reserve
A. Rs. 67,500
B. Rs. 62,500
C. Rs. 70,500
D. Rs. 1,40,000
19. Discount allowed on reissue of forfeited shares is debited to
A. loss on issue of shares account
B. share forfeiture account
C. profit and loss account
D. general reserve account
20. How many no. of shares will be issued to settle purchase consideration?
A. 1200 shares
B. 1250 shares
C. 1500 shares
D. 1550 shares
21. In order to redeem redeemable preference share of RS. 5,00,000 at a premium of 5%, and new equity shares of RS. 5,00,000 Nominal value are issued, then the amount to be transferred to Capital Redemption Reserve Fund will be
A. RS. 60,000
B. RS. 55,000
C. RS. 30,000
D. RS. Zero
22. Following amounts were payable on issue of shares by a company 3 on Application, 3 on Allotment, 2 on First call and 2 on Final call. X holding 500 shares paid only application and allotment money whereas Y holding 400 Shares did not pay final call. Amount of calls in arrears will be -
A. Rs.3800
B. Rs.2800
C. Rs.1800
D. Rs.6200
23. Red Herring Prospectus is a prospectus which
A. Is of Red Colour
B. Is Prospectus of Blue-Chip Companies
C. Is Illegal Prospectus
D. Does not have details of either price or number of shares being offered, or the amount of issue
24. The expenses relating to the company should be allocated to/in ________ period.
A. Pre incorporation
B. Sales ratio
C. Post incorporation
D. Time ratio
25. ABC Ltd purchased furniture of Rs. 1,50,000 by issuing shares of Rs. 100 at premium of 25 %. How many no. of shares will be issued to settle purchase consideration?
A. 1200 shares
B. 1250 shares
C. 1500 shares
D. 1550 shares
26. Which of the following is allocated on the basis of turnover?
A. Rent
B. Salaries
C. Discount allowed
D. Insurance
27. Which of the following statement is false?
A. Capital reserves may be used to write off capital losses
B. Capital reserves may be used to issue bonus shares.
C. Capital reserves may be used for declaration of dividend
D. Capital reserves are not available for declaration of dividend
28. A company forfeited 2,000 shares of Rs.10 each (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 how much?
A. Rs. 10,000
B. Rs. 8,000
C. Rs. 2,000
D. Rs. 18,000
29. According to Sec. 55A company cannot issue redeemable preference share for a period exceeding -
A. 2 Years
B. 20 Years
C. 5 Years
D. 15 Years
30. If a share of Rs. 10, on which Rs. 6 has been paid, is forfeited, it can be reissued at the minimum price of ________.
A. Rs. 6 per share
B. Rs. 10 per share
C. Rs. 16 per share
D. Rs. 4 per share
31. Sita and Geeta who were working as partners, formed a limited company in the name of SG Limited on 31st May 2020 to take over their existing business with the consideration being a sum of Rs. 3,00,000 and the condition that until the amount was discharged, interest will be payable @ 6%p.a. from 1st January, 2021. The amount was paid on 30th June, 2020.The year ended on 31st March 2021 Calculate the amount distributed between pre and post incorporation period.
A. 7,500 and 1,500 respectively
B. 6,000 and 3,000 respectively
C. 7,000 and 2,000 respectively
D. 5,000 and 4,000 respectively
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