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Issue, Forfeiture and Re-Issue of Share

Board » Bihar Board » Class 12th » English Medium » Commerce » Accountancy » L-9: Issue, Forfeiture and Re-Issue of Share

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ID- 4665

1. The amount of discount on a reissue of forfeited shares cannot exceed:

  • (A) 5% of the paid-up capital
  • (B) 10% of the capital reissued
  • (C) The amount received on forfeited shares
  • (D) The amount not received on forfeited shares
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ID- 4666
BSEB, 2018

2. Right shares are the shares, which:

  • (A) Are issued to the direction of the company
  • (B) Are issued to existing shareholders of the company
  • (C) Are issued to promoters in consideration of their services
  • (D) Are issued to the vendors for purchasing assets
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ID- 4667
BSEB, 2016, 18

3. Dividends are usually paid on:

  • (A) Authorised Capital
  • (B) Issued Capital
  • (C) Called-up Capital
  • (D) Paid-up Capital
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ID- 4668
BSEB, 2010, 15, 16

4. Equity shareholders are ............. of the company.

  • (A) Creditors
  • (B) Owners
  • (C) Customers
  • (D) None of these
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ID- 4669
BSEB, 2009, 11

5. Under the provisions of the Companies Act, a company can issue:

  • (A) Equity shares
  • (B) Preference shares
  • (C) Preference shares and Equity shares
  • (D) None of these
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ID- 4670
BSEB, 2009, 11

6. Balance of Forfeited shares Account after re-issue of forfeited shares is transferred to:

  • (A) Profit and Loss Statement
  • (B) Capital Reserve Account
  • (C) General Reserve Account
  • (D) None of these
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ID- 4671

7. Forfeiture of shares results in the reduction of:

  • (A) Paid-up Capital
  • (B) Authorised Capital
  • (C) Fixed Capital
  • (D) Reserve Capital
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ID- 4672
BSEB, 2016, 19

8. As per Table F the maximum rate of interest on calls advance paid is:

  • (A) 8 % p.a.
  • (B) 12 % p.a.
  • (C) 10 % p.a.
  • (D) None of these
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ID- 4673

9. The maximum capital beyond which a company is not allowed to raise funds, by the issue of shares is called ..............

  • (A) Issued Capital
  • (B) Reserve Capital
  • (C) Authorised Capital
  • (D) Subscribe Capital
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ID- 4674

10. If equity shares of ₹ 10 each are issued at ₹ 12 each, it is called:

  • (A) Issued at Par
  • (B) Issued at Premium
  • (C) Issued at Discount
  • (D) None of these
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ID- 4675

11. Premium on issue of shares can be used for:

  • (A) Issue of Bonus Shares
  • (B) Distributed of Profit
  • (C) Transferring to General Reserve
  • (D) All these
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ID- 4676

12. The portion of the authorized capital which can be called up only on the liquidation of the company is called:

  • (A) Issued Capital
  • (B) Called-up Capital
  • (C) Uncalled Capital
  • (D) Reserve Capital
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ID- 4677

13. According to the Companies Act, the minimum subscription has been fixed at ............ of the issued amount:

  • (A) 5 %
  • (B) 50 %
  • (C) 90 %
  • (D) None of these
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ID- 4678

14. According to 'Table F' interest on calls-in-arrears charged should not exceed:

  • (A) 5 % p.a.
  • (B) 6 % p.a.
  • (C) 8 % p.a.
  • (D) 10 % p.a.
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ID- 4679
BSEB, 2018

15. Who are the owners of the Company?

  • (A) Equity Shareholders
  • (B) Preference Shareholders
  • (C) Debentureholders
  • (D) Both (A) and (B)
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ID- 4680
BSEB, 2018

16. The nominal capital is known as:

  • (A) Authorised capital
  • (B) Registered capital
  • (C) Both (A) and (B)
  • (D) None of these
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ID- 4681

17. Balance of share Forfeiture Account is shown in the Balance Sheet under the head .............

  • (A) Share Capital Account
  • (B) Reserve and surplus
  • (C) Current Liabilities
  • (D) Non-current liabilities
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ID- 4682
BSEB, 2011, 19

18. Total amount of Liabilities side includes:

  • (A) Authorised Capital
  • (B) Issued Capital
  • (C) Subscribed Capital
  • (D) Paid-up Capital
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ID- 4683
BSEB, 2016

19. Share Allowed Account is:

  • (A) Personal A/c
  • (B) Real A/c
  • (C) Nominal A/c
  • (D) None of these
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ID- 4684

20. Premium on issue of shares is shown on which side of the Balance Sheet?

  • (A) Assets
  • (B) Liabilities
  • (C) Both
  • (D) None of these
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ID- 4685
BSEB, 2016, 19

21. Premium on issue of shares is a:

  • (A) Capital Gain
  • (B) Capital Loss
  • (C) General Profit
  • (D) General Loss
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ID- 4686

22. Shareholders get:

  • (A) Interest
  • (B) Dividend
  • (C) Commission
  • (D) Profit
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ID- 4687

23. Shares can be forfeited:

  • (A) For failure to attend meetings
  • (B) For non-payment of call money
  • (C) For failure to repay the loan to the Bank
  • (D) For which shares are pledged as a security
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ID- 4688
BSEB, 2013

24. A company issues its shares at a premium under which section of the Indian Companies Act, 2013?

  • (A) 78
  • (B) 79
  • (C) 52
  • (D) 53
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ID- 4689

25. A company can utilize securities premium for:

  • (A) Writing off loss incurred on revaluation of assets
  • (B) Issuing fully paid bonus shares
  • (C) Paying dividend
  • (D) Writing off trading loss
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ID- 4690
BSEB, 2017

26. The difference between subscribed capital and called-up capital is called:

  • (A) Calls-in-arrear
  • (B) Calls-in-advance
  • (C) Uncalled Capital
  • (D) None of these
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ID- 4691

27. If vendors are issued fully paid shares of ₹ 1,00,000 in consideration of net assets of ₹ 1,20,000 the balance of ₹ 20,000 will be credited to:

  • (A) Goodwill Account
  • (B) Capital Reserve Account
  • (C) Vendor's Account
  • (D) Profit and Loss
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ID- 4692
BSEB, 2016

28. Which one of the following is the registered capital of the company:

  • (A) Paid-up Capital
  • (B) Uncalled Capital
  • (C) Authorised Capital
  • (D) Issued Capital
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ID- 4693

29. As per the Companies Act, only preference shares, which are redeemable within .......... can be issued.

  • (A) 24 years
  • (B) 22 years
  • (C) 30 years
  • (D) 20 years
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ID- 4694

30. An Ltd. purchased machinery for ₹ 1,80,000 for which it is paying by the issue of shares of ₹ 100 each at a 20% premium. How many shares will be issued as consideration?

  • (A) 2,500
  • (B) 2,000
  • (C) 1,500
  • (D) 3,000
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ID- 4695

31. Which account should be debited when shares are issued to promoters:

  • (A) Share Capital A/c
  • (B) Assets A/c
  • (C) Promoter's A/c
  • (D) Goodwill A/c
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ID- 4696

32. A company is registered with a share capital of ₹ 1,00,000 divided into 10,000 shares of ₹ 10 each. Of these Shares, 9,990 shares are held by Rajeev and 10 shares are held by Sanjay. In the eye of law, it is treated as:

  • (A) Partnership
  • (B) Private Company
  • (C) Public Company
  • (D) Government Company
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ID- 4697

33. If the loss on the reissue of shares is less than the amount forfeited, the 'surplus' or profit is transferred to:

  • (A) Capital Reserve
  • (B) Revenue Reserve
  • (C) Profit and Loss Account
  • (D) None of these
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ID- 4698

34. Z & Co. forfeited 100 shares of ₹ 10 each for non-payment of the final call of ₹ 2 per share. All the Forfeited shears were re-issued at ₹ 9 per share. What amount will be transferred to Capital Reserve A/c?

  • (A) 700
  • (B) 800
  • (C) 900
  • (D) 1000
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ID- 4699

35. The Liability of members in a company is:

  • (A) Limited
  • (B) Unlimited
  • (C) Stable
  • (D) Fluctuating
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ID- 4700

36. Capital included in the liabilities of a company is called:

  • (A) Authorised Capital
  • (B) Issued Capital
  • (C) Subscribed Capital
  • (D) Paid-up capital
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ID- 4701

37. Securities premium is shown under which head in the Balance Sheet?

  • (A) Reserve and Surplus
  • (B) Miscellaneous Expenditure
  • (C) Current Liabilities
  • (D) Share Capital
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ID- 4702

38. If a share of ₹ 10 on which ₹ 8 has been called and ₹ 6 is paid is forfeited, the Share Capital Account should be debited with:

  • (A) ₹8
  • (B) ₹10
  • (C) ₹6
  • (D) ₹2
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ID- 4703

39. According to the Indian Companies Act, 2013, the Balance Sheet of a Company is prepared as per:

  • (A) Part II of Schedule III
  • (B) Part I of Schedule III
  • (C) Part II of Schedule VI
  • (D) Part I of Schedule VI
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ID- 4704
BSEB, 2016

40. Application money should not be less than ............. of the issue price of each share.

  • (A) 10 %
  • (B) 15 %
  • (C) 25 %
  • (D) 50 %
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ID- 4705

41. When the full amount is due on any call but it is not received, then the short fall is debited to:

  • (A) Calls-in-advance
  • (B) Calls-in-arrear
  • (C) Share Capital
  • (D) Suspense Account
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ID- 4706

42. 100 equity shares of ₹ 10 each were issued to the public at a premium payable on an allotment of ₹ 2 per share. Applications were received for 12,000 shares. Amount of Securities Premium Account will be:

  • (A) 20,000
  • (B) 24,000
  • (C) 4,000
  • (D) 1,600
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ID- 4707

43. Which of the following should be deducted from the called-up Capital to find out the paid-up capital:

  • (A) Calls-in-advance
  • (B) Calls-in-arrear
  • (C) Share Forfeiture
  • (D) Discount on issue of shares
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ID- 4708

44. According to SEBI, the Minimum subscription must be at least .......... of shares issued before allotment shares.

  • (A) 100 %
  • (B) 90 %
  • (C) 25 %
  • (D) 5 %
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ID- 4709

45. Right shares are issued to:

  • (A) Promoters for the Services
  • (B) Holders of convertible deventures
  • (C) Existing shareholders
  • (D) All of the above
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ID- 4710

46. Reserve share capital means:

  • (A) Part of authorised capital to be called at the beginning
  • (B) Portion of uncalled capital to be called only at liquidation
  • (C) Over-subscribed Capital
  • (D) Under-subscribed Capital
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ID- 4711

47. Share Application Account is:

  • (A) Personal Account
  • (B) Real Account
  • (C) Nominal Account
  • (D) None of these
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ID- 4712

48. When a company issues shares at a premium, an amount of premium may be received by the company:

  • (A) Along with application money
  • (B) Along with allotment money
  • (C) Along with calls
  • (D) Along with any of the above
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ID- 4713

49. Which statement is issued before the issue of shares?

  • (A) Prospectus
  • (B) Articles of Association
  • (C) Memorandum of Association
  • (D) All of these
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ID- 4714

50. A new company cannot issue its shares:

  • (A) At Discount
  • (B) At Premium
  • (C) At Par
  • (D) At Faeevalues
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ID- 4715

51. An issue of shares that is not a public issue but offered to a selected group of persons is called:

  • (A) Public offer
  • (B) Private placement of shares
  • (C) Initial public offer
  • (D) None of these
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ID- 4716

52. Securities premium cannot be applied for:

  • (A) Paying dividend to members
  • (B) Issuing bonus shares to members
  • (C) Writing off preliminary expenses of company
  • (D) Writing off discount on issue of debentures
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ID- 4717

53. A Joint Stock company is:

  • (A) An artificial legal person
  • (B) Natural person
  • (C) A general person
  • (D) None of these
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ID- 4718
BSEB, 2016

54. Equity shareholders are:

  • (A) Customers
  • (B) Creditors
  • (C) Debtors
  • (D) Owners
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ID- 4719

55. J. Ltd. re-issued 2,000 shares which were forfeited by crediting the share forfeiture account by ₹ 3,000. These shares were re-issued at ₹ 9 per share. The amount transferred to Capital Reserve will be:

  • (A) 3,000
  • (B) 2 000
  • (C) 1,000
  • (D) Nil
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ID- 4720

56. A company has ............

  • (A) Separate Legal Entity
  • (B) Perpetual Existence
  • (C) Limited Liability
  • (D) All of the above
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ID- 4721

57. Discount allowed on the reissue of forfeited shares is debited to:

  • (A) Share Capital A/c
  • (B) Share Forfeiture A/c
  • (C) Profit & Loss
  • (D) General Reserve
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ID- 4722
BSEB, 2017

58. Amount of calls-in-arrear is:

  • (A) Added to Capital
  • (B) Deducted from share Capital
  • (C) Shown on the assets side
  • (D) Shown on the equity and liability side
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ID- 4723

59. If a share of ₹ 10 on which ₹ 8 has been paid-up is forfeited, it can be reissued at the minimum price of ............

  • (A) ₹ 10 per share
  • (B) ₹ 8 per share
  • (C) ₹ 5 per share
  • (D) ₹ 2 per share
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ID- 4724

60. Shares may be issued:

  • (A) At Par value
  • (B) At premium
  • (C) At Discount
  • (D) Both (A) & (B)
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ID- 4725

61. When shares are forfeited, the share capital account is debited with:

  • (A) Nominal value of Shares
  • (B) Market value of Shares
  • (C) Called-up value of Shares
  • (D) Paid-up value of shares
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ID- 4726

62. For what purpose Securities Premium Reserve Account cannot be utilized?

  • (A) Amortization of preliminary expenses
  • (B) Distribution of cash dividend
  • (C) Issue of fully paid bonus shares
  • (D) Buy Back of on shares
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ID- 4727

63. To whom the dividend is given at a fixed rate in a company?

  • (A) To equity shareholders
  • (B) To preference shareholders
  • (C) To debentureholders
  • (D) To promoters
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ID- 4728

64. The maximum number of members in a public company is:

  • (A) 7
  • (B) 200
  • (C) 20
  • (D) No Limit
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ID- 4729

65. Pro-rata allotment of shares is made when there is:

  • (A) Under-subscription
  • (B) Over-subscription
  • (C) Equal subscription
  • (D) All of the above
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66. The maximum number of members in One personal company (OPC) can be:

  • (A) 50
  • (B) 200
  • (C) 1
  • (D) No Limit
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