Accounting for share Capital Test

Result

Accounting for share Capital Test - 32

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Weekly Quiz Competition

Question 1
1 / -0

When any shareholder pay any call money in advance then the A/c to be credited would be _________.

A
calls in advance A/c

B
pre-paid A/c

C
suspense A/c

D
goodwill A/c
Question 2
1 / -0

Premium of issue of preference share is shown under __________.

A
reserves and surplus

B
miscellaneous expenses

C
capital A/c

D
secured loans and advances
Question 3
1 / -0

On an equity share of $$Rs. 20$$, the company has called up $$Rs. 18$$ but actually received $$Rs. 16$$ only. The difference of $$Rs. 2$$ will be debited to ________.

A
calls in arrears

B
calls in advance

C
calls in suspense

D
calls in doubt
Question 4
1 / -0

When the incoming partner bring his share of goodwill in cash, which of these methods of revaluation of goodwill is appropriate?

A
Revaluation method

B
Memorandum revaluation method

C
Premium method

D
Any of the above

Solution

Under the premium method the incoming partner brings some proportionate share in form of goodwill in cash it maybe retained in the business and can be withdrawn by old partner in sacrifices ratio.
Question 5
1 / -0

Discount allowed on re-issue of forfeited shares is ____________.

A
debited to discount A/c

B
debited to share forfeited A/c

C
debited to profit and loss A/c

D
debited to share premium A/c

Solution

When the board of directors of the company, while reissuing the forfeited shares, decide to re-issue them at a discount, then the discount allowed shall not exceed the amount forfeited such shares. Also, the discount allowed is debited to Share Forfeiture A/c while recording re-issue.
Question 6
1 / -0

On a share of $$Rs. 100$$ issued at a premium of $$Rs. 10$$ the whole amount has been called up but in the case of a shareholder only $$Rs. 80$$ has been received, the share capital would be credited by ____________.

A
$$Rs. 100$$

B
$$Rs. 110$$

C
$$Rs. 80$$

D
$$Rs. 70$$
Question 7
1 / -0

A company can forfeit share for non payment of call money only if _________.

A
special resolution to that effect is passed

B
article of Association so provides

C
allowed by central government on an application

D
all the three conditions to be met
Question 8
1 / -0

A company cannot re issue forfeited shares at a discount more than __________.

A
$$10$$%

B
Amount forfeited

C
Nominal value of the share

D
Prevailing discount rate
Question 9
1 / -0

A share can be forfeited ___________.

A
for non-payment of call money

B
for failure to attend AGM

C
for failure to send proxy form

D
for any of the above failures

Solution

A forfeited share is an equity share investment which is cancelled by the issuing company. A share is forfeited when the shareholder fails to pay the subscription money (share allotment, first call, final call,etc.) called upon by the issuing company. Hence, option A is correct.
Question 10
1 / -0

On an equity share of $$Rs. 20$$, the company has called up $$Rs. 16$$ but actually received $$Rs. 18$$. The difference of $$Rs. 2$$ will be ___________.

A
debited to calls in Advance A/c

B
credited to calls in Advance A/c

C
credited to calls in Suspense A/c

D
debited to calls in Doubt A/c

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Re-Attempt Weekly Quiz Competition

Accounting for share Capital Test - 32

Result

Accounting for share Capital Test - 32

Score

-

Rank

-

SHARING IS CARING

Question 1

calls in advance A/c

pre-paid A/c

suspense A/c

goodwill A/c

Question 2

reserves and surplus

miscellaneous expenses

capital A/c

secured loans and advances

Question 3

calls in arrears

calls in advance

calls in suspense

calls in doubt

Question 4

Revaluation method

Memorandum revaluation method

Premium method

Any of the above

Solution

Question 5

debited to discount A/c

debited to share forfeited A/c

debited to profit and loss A/c

debited to share premium A/c

Solution

Question 6

$$Rs. 100$$

$$Rs. 110$$

$$Rs. 80$$

$$Rs. 70$$

Question 7

special resolution to that effect is passed

article of Association so provides

allowed by central government on an application

all the three conditions to be met

Question 8

$$10$$%

Amount forfeited

Nominal value of the share

Prevailing discount rate

Question 9

for non-payment of call money

for failure to attend AGM

for failure to send proxy form

for any of the above failures

Solution

Question 10

debited to calls in Advance A/c

credited to calls in Advance A/c

credited to calls in Suspense A/c

debited to calls in Doubt A/c

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