Accounting for share Capital Test

Question 1
1 / -0

Convertible Preference share is one which carries _____________________.

A
A right to receive arrears of dividend

B
A rights to participate in the surplus profits and surplus assets

C
A right to participate in the surplus profits or surplus assets or both

D
A right of conversion into equity share

Question 2
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The balance of Securities Premium Account can be utilized _______________________.

A
To issue fully paid bonus shares to creditors.

B
To write off development expenditure.

C
To provide for the premium payable on the buy-back of equity shares.

D
None of the above

Question 3
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Unless otherwise stated, the preference shares are deemed to be _________________.

A
Non-cumulative, Non-participating and Non-convertible.

B
Cumulative, Non-participating and Convertible.

C
Cumulative, Participating and Non-convertible

D
None of the above

Question 4
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As per Sec. 69 (3) of the Companies Act, 1956, the amount payable on application on each share must be at least ______________________.

A
5% of the nominal amount of share

B
25% of the nominal amount of share

C
25% of the called amount of share

D
5% of the called amount of share.

Question 5
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Prospectus of a company is __________________.

A
An application for shares/debentures

B
An offer by the company to the public to sell its shares or debentures

C
Cumulative, Participating and Non-convertible

D
None of the above

Question 6
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As per Table A, the amount of call on a share must not exceed _____________________.

A
5% of the nominal amount of share

B
25% of the nominal amount of share

C
25% of the called amount of share

D
5% of the called amount of share

Question 7
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As per SEBI Guidelines, the amount payable on application on each share must be at least-

A
5% of the nominal amount of share

B
25% of the nominal amount of share

C
25% of the called amount of share

D
5% of the called amount of share

Question 8
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The directors of CAS Ltd. made the final call of Rs 30 per share on May 15 indicating the last date of payment of call money to be May 31. Mr. X, holding 10,000 shares paid the call money on July 15.
If the company adopts Table A, the amount of interest on calls-in-arrear to be paid by
Mr. X is ____________.

A
Rs 1,250

B
Rs 1,875

C
Rs 1,500

D
Rs 2,250

Question 9
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A company invited applications for 25,000 equity shares of Rs 10 each and received 30,000 applications along with the application money of Rs 4 per share. Which of the following alternatives can be followed?
I. Refund the excess applications.
II. Make pro rata allotment to all the applicants, and refund the excess application money.
III. Not to allot any shares to some applicants, full allotment to some of the applicants and pro rata allotment to the rest of the applicants.
IV. Not to allot any shares to some applicants and make pro rate allotment to other applicants.
V. Make pro rata allotment to all the applicants and adjust the excess money received towards call money.

A
Only (II) above

B
Both (I) and (IV) above

C
All (I), (II), (Ill), (IV) and (V) above

D
Only (III) above

Question 10
1 / -0

If shares are forfeited, share capital account is debited with _________________.

A
the face value of shares.

B
the called up value of shares.

C
the paid up value of shares.

D
None of the above

Submit Test

Accounting for ...

Question 1

A right to receive arrears of dividend

A rights to participate in the surplus profits and surplus assets

A right to participate in the surplus profits or surplus assets or both

A right of conversion into equity share

Question 2

To issue fully paid bonus shares to creditors.

To write off development expenditure.

To provide for the premium payable on the buy-back of equity shares.

None of the above

Question 3

Non-cumulative, Non-participating and Non-convertible.

Cumulative, Non-participating and Convertible.

Cumulative, Participating and Non-convertible

None of the above

Question 4

5% of the nominal amount of share

25% of the nominal amount of share

25% of the called amount of share

5% of the called amount of share.

Question 5

An application for shares/debentures

An offer by the company to the public to sell its shares or debentures

Cumulative, Participating and Non-convertible

None of the above

Question 6

5% of the nominal amount of share

25% of the nominal amount of share

25% of the called amount of share

5% of the called amount of share

Question 7

5% of the nominal amount of share

25% of the nominal amount of share

25% of the called amount of share

5% of the called amount of share

Question 8

Rs 1,250

Rs 1,875

Rs 1,500

Rs 2,250

Question 9

Only (II) above

Both (I) and (IV) above

All (I), (II), (Ill), (IV) and (V) above

Only (III) above

Question 10

the face value of shares.

the called up value of shares.

the paid up value of shares.

None of the above

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