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Accounting for share Capital Test - 45

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Accounting for share Capital Test - 45
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Weekly Quiz Competition
  • Question 1
    1 / -0
    Jindal Ltd. forfeited 400 equity shares of Rs. 10 each, issued at par held by Mr. X for non-payment of first call of Rs. 2 per share and the final call of Rs. 3 per share. Out of these, 150 shares were reissued to Mr. Y at Rs. 8 per share and the rest of these were re-issued to Mr. Z at Rs. 7 per share. On reissue, amount to be transferred to Capital Reserve Account will be ______.
  • Question 2
    1 / -0
    A company has subscribed capital of 2,00,000 equity shares of Rs. 25 each, Rs. 20 per share called up. The directors forfeited 200 equity shares held by a shareholder who failed to pay the first call made @ Rs. 10 per share. Later, the directors reissued these shares as Rs. 20 per share paid up at Rs. 15 per share. On reissue, amount to be transferred to Capital Reserve Account will be _____.
  • Question 3
    1 / -0
    Z Ltd. issued 10,000 shares of Rs. 10 each. The called up value per share was Rs. 8. The company bought 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 account will be _____.
  • Question 4
    1 / -0
    A preference share is one which enjoys a _______.
    Solution
    Preference shares are those shares which carry certain special or priority rights. Firstly, dividend at a fixed rate is payable on these shares before any dividend is paid on equity shares. At the time of winding up of the company, capital is repaid to preference shareholders prior to the return of equity capital.
  • Question 5
    1 / -0
    Due to non -payment of first call of Rs. 3 per share, Mona Ltd. forfeited 100 shares of Rs. 10 each, which were issued at par, Rs. 8 per share were called up till date. Of these forfeited shares, 80 shares were issued subsequently by Mona Ltd. at Rs. 5 as Rs. 8 paid-up per share. On reissue, amount to be transferred to Capital Reserve Account will be ______.
  • Question 6
    1 / -0
    On 1.1.2015, X Ltd. makes an issue of 1,00,000 equity shares of Rs. 100 each payable as follows:
    Rs.
    Application20
    Allotment30 (3 months after allotment)
    Final Call50
    Applications were received for 1, 20,000 shares and the directors refunded the excess application money. One shareholder, who was allotted 2,000, shares paid first and final call with allotment money and another shareholder did not pay allotment money on his 3,000 shares but which he paid with first and final call. Directors have decided to charge and allow interest, according to the Table F of Schedule I to the Companies Act, 2013. The amount of interest on calls-in-advance _______.
  • Question 7
    1 / -0
    X Ltd. made a final call on equity shares @ Rs. 20 each. Face value of shares is Rs. 100. One shareholder holding 300 shares paid the final call after 2.5 months after it had become due. The company had adopted Table F of Schedule I to the Companies Act, 2013, the amount of interest on Calls-in-Arrear will be ______.
    Solution
    Calls in Arrears refer to the amount called by the company which is not paid by the shareholders before the due date fixed for the payment. Such amount is transferred to an account calls in arrears account from the call account. 
    Here, 300 shares were unpaid at Rs 20 which means Rs 6000 was unpaid.
    As per the Companies Act, if articles don't mention about calls in arrears then the rate of interest will be 10% p.a.
    Therefore, 10% of 6,000 is Rs 600 and it was paid after 2.5 months so the interest will be Rs. (600/12) *2.5 i.e. Rs 125
  • Question 8
    1 / -0
    Sukriti Ltd. forfeited 100 shares of Rs. 10 each, for non-payment of final call of Rs 2. Of these, 60 shares were reissued @ Rs. 9 per share as fully paid. On reissue, amount to be transferred to Capital Reserve Account will be _____.
  • Question 9
    1 / -0
    X Ltd. made a final call on equity shares @ Rs. 20 each. Face value of shares is Rs. 100. One shareholder holding 500 shares had paid the final call before 4 months it had become due. The company had adopted Table F of Schedule I to the Companies Act, 2013, the amount of interest on Calls-in-Advance will be ____.
    Solution
    Sometimes a shareholder pays a portion or whole on the unpaid amount on the shares held by him in advance. In such a case, money so received in advance is transferred to Calls-in- advance account.
    Here, 500 shares were paid at Rs 20 which means Rs 10000 was paid in advance.
    As per the Companies Act if articles don't mention calls in advance then the rate of interest will be 12% p.a. Therefore, 12% of 10,000 is Rs 1200 and for it was paid before 4 months so the interest will be Rs (1200/12) *4 i.e. Rs 400. 
  • Question 10
    1 / -0
    __________ is a separate legal structure where total capital can be divided in many shares.
    Solution
    Company is a separate legal entity governed by the Companies Act in India. Share Capital of the Company is divided in to number of shares which are allotted to different shareholders who in turn contribute the money in the business. 
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