Accountancy Test

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Accountancy Test - 14

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Weekly Quiz Competition

Question 1
5 / -1

A company issued 25,000 shares and received applications for 50,000 shares. Company wants to allot shares to everyone who has applied. What will be the ratio for allotment?

A
2:1

B
1:2

C
1:1

D
5:1

Solution

Since the company received applications for 50,000 shares but only has 25,000 shares available for allotment, they need to allot shares to everyone on a pro-rata basis.

To determine the ratio for allotment, we can divide the number of available shares by the number of shares applied for:
25,000 (available shares) ÷ 50,000 (shares applied for) = 0.5

This means that for every share applied for, the company can allot 0.5 shares. So, the ratio for allotment will be 1:2 (one share allotted for every two shares applied for).
Question 2
5 / -1

Capital of a company is divided in units which is called

A
Debenture

B
Bond

C
Stock

D
Share

Solution

The capital of a company is divided into units called shares, which represent a portion of ownership in the company. Shareholders have the right to vote on corporate matters and to receive dividends when profits are distributed.
Question 3
5 / -1

A company issued 10,000 shares of ₹10 each. Amount is payable as ₹ 2 on application, ₹ 5 on allotment and ₹ 3 on first and final call. A shareholder who had 1,000 shares failed to pay allotment and first call amount on due date. What will be the amount received by company against issue of shares?

A
₹ 20,000

B
₹ 92,000

C
₹ 1,00,000

D
₹ 80,000

Solution

Amount due on total shares (10,000 x 10) = ₹ 1,00,000
Shareholder didn’t pay (1,000 x 8) = ₹ 8,000
So total amount received on shares is
₹ 92,000 (1,00,000 - 8,000)
Question 4
5 / -1

Penalty for delay in refunding application money is charged at

A
6%

B
5%

C
15%

D
20%

Solution

Preference shareholders are the creditors of the company and equity shareholders are the owners of the company.
Question 5
5 / -1

A Ltd. company took over assets worth ₹ 10,00,000 and liabilities of ₹ 3,00,000 for purchase consideration worth ₹ 12,00,000, how much amount will be debited to goodwill account?

A
₹ 10,00,000

B
₹ 5,00,000

C
₹ 3,00,000

D
₹ 12,00,000

Solution

Good will = 12,00,000 - (10,00,000 - 3,00,000) = ₹ 5,00,000
Question 6
5 / -1

If shares of ₹ 4,00,000 are issued for purchase of assets of ₹ 5,00,000, ₹ 1,00,000 will be treated as ______

A
discount

B
goodwill

C
profit

D
loss

Solution

Explanation: In this case, the company is issuing shares worth ₹ 4,00,000 to acquire assets worth ₹ 5,00,000. The difference between the asset value and the share value is ₹ 1,00,000. This difference represents the excess amount paid for the assets, which is generally attributed to the company's reputation, brand value, or other intangible factors. This excess amount is treated as Goodwill, an intangible asset that represents the value of a company's brand name, customer base, and other non-quantifiable factors. Goodwill is recorded on the balance sheet and is considered an asset of the company.
Question 7
5 / -1

600 shares of ₹ 10 each were forfeited for non-payment of ₹ 2 per share on first call and ? 5 per share on final call. Share forfeiture account will be credited with

A
₹ 1,200

B
₹ 1,800

C
₹ 3,000

D
₹ 4,200

Solution

Share forfeiture account = 600 x 3 = ₹ 1,800
Question 8
5 / -1

A company allotted 20,000 shares to applicants of 50,000 shares after rejecting 10,000 applications. The ratio in which company allotted the share will be

A
5:2

B
5:3

C
2:1

D
3:1

Solution

Applicants of 40,000 shares allotted 20,000 shares Ratio 40,000 : 20,000 = 2:1
Question 9
5 / -1

Which shareholders have a right to receive the arrears of dividend from future profits?

A
Redeemable Preference Shareholders

B
Participating Preference Shareholders

C
Cumulative Preference Shareholders

D
Non-cumulative Preference Shareholders

Solution

f the company fails to repay the application money within the said 60 days period, it shall be liable to repay that money with interest @ 15% p.a. from the expiry of the 60th day.
Question 10
5 / -1

If applicants for 80,000 shares were allotted 60,000 shares on pro rata basis, the shareholder who was allotted 1,200 shares must have applied for

A
900 shares

B
3,600 shares

C
1,600 shares

D
4,800 shares

Solution

Applied shares = 1,200 x 80,000 / 60,000

= 1,600

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Accountancy Test - 14

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Accountancy Test - 14

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SHARING IS CARING

Question 1

2:1

1:2

1:1

5:1

Solution

Question 2

Debenture

Bond

Stock

Share

Solution

Question 3

₹ 20,000

₹ 92,000

₹ 1,00,000

₹ 80,000

Solution

Question 4

6%

5%

15%

20%

Solution

Question 5

₹ 10,00,000

₹ 5,00,000

₹ 3,00,000

₹ 12,00,000

Solution

Question 6

discount

goodwill

profit

loss

Solution

Question 7

₹ 1,200

₹ 1,800

₹ 3,000

₹ 4,200

Solution

Question 8

5:2

5:3

2:1

3:1

Solution

Question 9

Redeemable Preference Shareholders

Participating Preference Shareholders

Cumulative Preference Shareholders

Non-cumulative Preference Shareholders

Solution

Question 10

900 shares

3,600 shares

1,600 shares

4,800 shares

Solution

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